IFOREX PLANS FIFTY MILLION POUND LONDON STOCK MARKET FLOATATION

The financial betting company Iforex Financial Trading Holdings is preparing for a possible £50 million flotation on the London Stock Exchange in a move that could bolster the City’s flagging IPO activity. This decision comes amidst concerns over the diminishing number of new listings in the UK and could offer a boost to London’s financial sector.

The flotation plan follows heightened market volatility sparked by global trade disruptions, creating a challenging environment for listings. Iforex aims to raise approximately £5 million through the initial public offering while targeting an overall valuation of £50 million. Even though this is considered a relatively small raise, the involvement of notable figures has drawn attention to the company’s plans.

Sir Mick Davis, former Xstrata chief executive and a figure well-known in London’s financial circles, is expected to join Iforex’s board as a non-executive director. Alongside him, Denzil Jenkins, who previously held senior roles at the London Stock Exchange Group, is also set to be appointed. These heavyweight additions are anticipated to strengthen Iforex’s leadership as it prepares for listing.

Headquartered in Israel, Iforex specialises in contracts for difference, a form of derivative trading that allows users to take leveraged positions on price movements in a variety of financial markets. CFD trading has grown in popularity in recent years, particularly during the Covid-19 pandemic, as individual traders sought to capitalise on volatile markets. Despite its growth, the high-risk nature of CFD trading continues to attract regulatory scrutiny.

While Iforex does not currently hold a licence to operate in the UK, it plans to pursue regulatory approval following the potential IPO. The company already holds regulatory licences in jurisdictions such as Cyprus and the British Virgin Islands, enabling it to operate within Europe. Advisory support for the flotation is being provided by Shore Capital.

London has been striving to attract more companies to the UK stock market in the face of growing competition from international financial hubs such as New York and Amsterdam. Reforms by the Financial Conduct Authority, including the largest overhaul of listing regulations in decades, aim to revitalise London’s appeal as a destination for public offerings. Amid these efforts, Iforex’s listing marks a noteworthy development in the current landscape.