Linklaters and A&O advise as CMC Markets reveals IPO listing

Linklaters and Allen & Overy (A&O) have won top roles on CMC Markets’ intention to float on the London Stock Exchange.

CMC turned to Linklaters London partners Iain Wagstaff and Patrick Sheil for advice. Wagstaff worked on UK matters and Sheil took the lead on US law aspects, such as the US liability regime and securities regulation.

The magic circle firm also represented CMC’s founder selling shareholder Peter Cruddas, whose family owns around 90 per cent of the company. Goldman Sachs purchased a 10 per cent stake in CMC in 2007.

A&O meanwhile acted for the underwriters, Goldman Sachs, Morgan Stanley and Royal Bank of Canada. The team was led by corporate partner David Broadley and US securities partner Adam Wells, with regulatory matters provided by partner Damian Carolan and tax advice by counsel Tim Harrop.

Online financial trading provider CMC Markets is expected to list on the main market of the London Stock Exchange from early February. It will raise gross proceeds of around £17m as part of the listing.

Background to the deal 

Linklaters has advised CMC Markets before on regulatory and derivatives issues, but the magic circle firm has not been a significant corporate adviser, with the company needing little corporate and ECM advice in the past.

The company has been growing as a privately-owned business since its establishment in the late 1980s and its IPO listing is expected to give it more publicity. Its main rival is the listed IG Index and it intends to raise its profile with the flotation.

Former Linklaters paralegal Oliver Basi is CMC Markets’ group head of legal, having joined the company in 2010 after various in-house roles at HBOS and Lloyds. Linklaters pitched to the CMC Markets board for the flotation, winning the mandate from another law firm, understood to be A&O.

CMC Markets’ former legal head Dominic Bacon left in 2009, with his main external law firms at the time including Baker & McKenzie, Berwin Leighton Paisner, CMS Cameron McKenna and DLA Piper.