ThinkMarkets IPO in jeopardy as FG Acquisition Corp. withdraws prospectus. Despite setbacks and a history of unsuccessful IPO attempts, ThinkMarkets remains optimistic, targeting a 2024 debut.
Forex broker ThinkMarket's stock market debut is uncertain as FG Acquisition Corp., the Canadian-listed SPAC it planned to merge with, withdraws its preliminary prospectus. The withdrawal, attributed to administrative reasons and exceeding the statutory 180-day window, leaves the future of the IPO hanging.
The award-winning CFD broker assures stakeholders of its commitment to the deal and plans to reapply with a new prospectus shortly.
This ThinkMarkets news of the IPO setback is not the first. In 2020, a $300 million IPO plan in Australia faltered at the preliminary stage. Despite facing losses—revealed in the May 2023 preliminary prospectus, showing nearly $21 million in losses over two years—ThinkMarkets remains positive about its debut in Canada, targeting 2024.
The FX/CFD market has seen several failed public offerings, with only a handful of firms successfully entering public trading. This Australian-based broker joins the ranks of brokers navigating the challenges of going public, citing potential barriers such as hosting client bases on third-party servers and reluctance to disclose financial details publicly.
As the company aims to refile the prospectus and move forward with the IPO, industry observers remain cautious, given the historical challenges faced by brokers in the FX/CFD sector when transitioning to publicly traded entities.