Online FX and CFD broker Plus500 started targeting US stock listings in light of planned rule changes by UK regulator FCA for listing on the London Stock Exchange.
London-listed global CFD broker, Plus500 Ltd (LON: PLUS), announced it plans to list on a US stock exchange after the city regulator, the Financial Conduct Authority, considered changing the rules companies must follow to list on the London Stock Exchange.
FCA aims to provide more flexible regulation for start-ups entering the market and prepare the UK's offshore equity market to be more competitive. One of the rules the FCA will overhaul is to allow listed companies to override governance practices but prohibit listing as Premiums. However, some companies are concerned that the change could affect shareholder rights, although there may be tolerance for dual-class shares and voting rights holder exemptions on acquisitions.
According to a recent report, FTSE250 Company is considering the possibility of a dual listing in New York as Plus500 executives are dissatisfied with its current valuation, but not in the US, which is likely to increase significantly.
With a market capitalization of £1.42 billion, Plus500 has been the best performer of the FTSE All Shares Index in shareholder returns since listing ten years ago. If this decision goes through, it will be interesting to see how the company navigates the US regulatory environment and competes with other established market players.
Additionally, the broker has targeted $500 million in annual revenue over the next five years with several efforts, namely expanding its trading platform and services, deepening customer loyalty, and expanding into new geographies, including the US.