Markit Ltd. jumped in its trading debut after raising $1.3 billion a larger than planned initial public offering.
Markit, whose price data supports much of the global derivatives and bond markets, rose 11.3 percent to $26.70 in New York today, after the IPO was priced at $24 a share. The stock was sold by investors including Bank of America Corp., Citigroup Inc. and Deutsche Bank AG, and the London-based company won’t receive any proceeds from the IPO.
Canada Pension Plan Investment Board, the nation’s largest pension fund manager, will acquire about 6 percent of Markit as part of the IPO, at a value of $250 million, it said 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.
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.
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.
The shares are listed on the Nasdaq Stock Market under the symbol MRKT.
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