Refinitiv-backed Tradeweb files for IPO

  • Blackstone bought 55 pct of Refinitiv in ’18 for $17 bln
  • BX, Thomson Reuters mulled sale or IPO for Tradeweb stake: Bloomberg
  • Tradeweb to trade on Nasdaq

Blackstone Group and Thomson Reuters have opted to take Tradeweb Markets Inc public, in an offering expected to raise more than $5 billion.

Tradeweb filed for a $100 million IPO, according to a March 7 SEC filing. The $100 million, considered a placeholder, will likely change in future filings.

The company did not disclose how many shares it would sell or at what price. That will also come in future filings. The shares are expected to trade on Nasdaq under the ticker TW.

An IPO of Tradeweb could be valued at more than $5 billion, Bloomberg and the Wall Street Journal reported.

Tradeweb, in a statement, said it planned to use proceeds from the IPO to buy back stakes held by certain owners. Refinitiv will continue to own a controlling interest in Tradeweb following the IPO, the company said.

Founded in 1996, Tradeweb builds and operates electronic marketplaces for 2,500 clients spread across 62 countries. This includes customers in hedge funds, central banks, trading firms and retail brokers.

For the combined year ended Dec. 31, Tradeweb reported net income of $29.3 million on gross revenue of $684.4 million.

Tradeweb acquired LeverTrade in 2006 and BondDesk in 2013.

The IPO comes five months after Blackstone acquired a majority, 55 percent, of the financial and risk unit of Thomson Reuters for $17 billion. The company was renamed Refinitiv. Other investors include Canada Pension Plan Investment Board and GIC Special Investments.

Blackstone and Thomson Reuters were considering a sale or IPO of their stake in Tradeweb, Bloomberg reported in March 2018. However, any IPO would not come until after the Refinitiv deal closed, the news service reported.

Blackstone completed its buy of a majority stake in the former financial and risk unit in October.

Blackstone, Thomson Reuters and Refinitiv did not disclose how many shares they were offering in the IPO. That information may also come in future filings.

Blackstone and Refinitiv declined comment.

Action Item: For more on Tradeweb: www.tradeweb.com/