Plus500 Seeks To Expand Operational Presence With US Listing

Retail broker Plus500 is seriously looking to raise its valuation by expanding and offering its shares in the United States. The broker’s management is visibly frustrated about its current valuation of $1.8 billion and wants to list its shares in the US to step up its game in 2023.

Plus500 entered the US market in 2023 after acquiring Cunningham Commodities and Cunningham Trading Systems. By the third quarter of 2022, the broker had launched its US-specific proprietary futures trading platform.

To show its commitment to the US market, the broker recently signed a four-year sponsorship deal with the US-based professional basketball team Chicago Bulls. This comes after the end of its 8-year partnership deal with major Spanish football club Atletico de Madrid.

Plus500 Wants To Raise Its Valuation

While the broker has not confirmed the decision yet, it has been reported that the company’s management board is increasingly getting worried about the firm’s current valuation, which they perceive as relatively low. Plus500 is currently valued at $1.8 billion, more than twice its revenue of $832.6 million in 2022. According to the Times report, the management of Plus500 believed that the company could be worth considerably more than its current valuation if the company’s shares are listed in the US. This view is shared because similar companies listed in the US tend to be higher in valuation.

Already, the company’s first-quarter revenue report shows a profit of $207.9 million while its EBITDA was reported as $100.9 million. Reports revealed that the broker expects to generate $601.2 million as revenue this year. The expected EBITDA for the year is projected at $266.9 million, with earnings per share expected to hit $2.43 per share. Plus500 says it has already realized over $950 million in cash in the first quarter of the year.

 

Plus500 Consolidates Presence In The Middle East

While Plus500 is seeking to expand its valuation and tap into the US market, the UK-based broker is also expanding its operations in the Middle East. Earlier this year, Plus500 strengthened its operations in the Middle East by gaining an operational license from the Dubai Financial Services Authority (DFSA).

Plus500’s share is trading at £15.69, but the company is actively engaging in a share buy-back activity to reduce the number of shares it has in the market. The program is expected to sieve $70 million worth of its shares from the market. Additionally, in 2022, the broker paid $30 million as dividends to its shareholders to boost investor confidence.

As it stands, the broker now has 12 regulatory licenses globally. It is expected to seek other licenses as the management looks for more partnerships and business engagements in other regions.

With a US share listing, plus500 will likely increase its awareness among the retail trading audiences in the country.