LONDON, Aug 14 – British-based commodities broker Marex Group is planning more acquisitions to diversify the company following a U.S. listing, its CEO disclosed, in the wake of strong interim results that sent shares to a record high.
Marex listed on the U.S. Nasdaq exchange in April with an initial public offering (IPO) price of $19 a share. The shares surged as much as 18% on Wednesday to a peak of $24.58.
The company recorded a 27% surge in revenue for the first six months of the year, with a notable 27% gain in after-tax profit to $102.9 million.
Jefferies noted in a brief that earnings per share of 90 cents in the second quarter surpassed its estimate of 57 cents, mainly driven by clearing revenue.
In an interview, CEO Ian Lowitt mentioned that Marex has a robust pipeline of merger and acquisition opportunities, focusing on geographic and product diversification, particularly in the Middle East, Asia, and the U.S.
Marex remains positive on the second half, but anticipates slightly weaker activity compared to the first six months. The company expects full-year adjusted operating profit between $280 million and $290 million.
Benefiting from rising global interest rates, Marex foresees challenges with anticipated rate cuts in the future, offset by significant growth initiatives.
We anticipate interest rates will come down. That’s a modest headwind for us, but there are a lot of growth initiatives that we have confidence will offset that, Lowitt stated.