CMC to float, IG Index posts record results
As reported in the TimesOnline, CMC is planning to IPO in the second quarter. The market is speculating on a valuation of between £750 and £800 million, based on approximately 20x average pre-tax earnings for the last three years.
Also IG Index, the UK spread-betting firm that relisted last spring, reported very strong first half results. The current share price values the company at approximately £620 million.
These are companies with users counted in the (low) tens of thousands. The opportunity to expand this business model to a much larger customer base is significant; that said reaching a wider audience would require adapting the specialist business model most of these firms have adopted.
