Markit Raises $1.3 Billion Pricing Increased IPO at Midpoint

Markit Ltd., the London-based financial-information provider whose price data forms the basis for much of the global derivatives and bond markets, raised $1.3 billion in a U.S. initial public offering after selling an increased number of shares at the midpoint of the range.

Markit’s stockholders, including Bank of America Corp., Citigroup Inc. and Deutsche Bank AG, sold 53.47 million shares for $24 each, according to a statement yesterday, after offering 45.7 million for $23 to $25 apiece. The company won’t receive proceeds from the IPO. The shares, listed on the Nasdaq Stock Market under the symbol MRKT, will begin trading today.

Markit derives half of its revenue from selling financial data such as prices and indexes, with the rest split between processing trades for over-the-counter derivatives, currencies and loans. It has more than 3,000 institutional customers globally, which subscribe to the information, including more than 150,000 independent valuations and prices for 2 million bonds. The company also sells enterprise-software platforms.

Based on the original terms of the prospectus, Markit would have an equity value of $4.3 billion at the IPO price. The offering is the fourth-largest in the U.S. this year, after subprime-auto lender Santander Consumer USA Holdings Inc., Chinese e-commerce company JD.com Inc. and health-care data provider IMS Health Holdings Inc., according to data compiled by Bloomberg.

Rising Sales

Markit competes with Bloomberg News parent Bloomberg LP in selling information and data to the financial industry. The profitable company’s sales increased 10 percent to $947.9 million last year, according to the prospectus.

Chief Executive Officer Lance Uggla, 52, founded Markit in 2003 after serving as the head of credit trading and head of Europe and Asia at TD Securities.

Bank of America, Barclays Plc, Citigroup, Credit Suisse Group AG, Deutsche Bank, Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Morgan Stanley and UBS AG managed Markit’s IPO. The company had 15 underwriters, of which 12 were also owners selling shares.

Markit disclosed the underwriters in its prospectus, appointing Jefferies Group LLC as the qualified independent underwriter, since the New York-based firm held no shares. Rothschild served as an independent equity adviser to Markit on the transaction, according to the filing.

To contact the reporter on this story: Leslie Picker in New York at lpicker2@bloomberg.net

To contact the editors responsible for this story: Mohammed Hadi at mhadi1@bloomberg.net Elizabeth Wollman, Stephen West

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