IPO has been seen as an alternative to improve brokers' credibility in the forex industry, and it seemed FXPrimus wanted to walk this path as well. But Australian media reports revealed a failed IPO by the forex broker.

For several years now, Initial Public Offering (IPO) has been seen as an alternative to improve broker's credibility in the forex industry, and it seemed FXPrimus wanted to walk this path as well. But Financemagnates yesterday (14/5) followed Australian media reports that revealed a failed IPO by the Limassol-headquartered forex broker.

FXPrimus Failed IPO

The story began when The Australian Financial Review reported the Australian Securities and Investments Commission (ASIC) has temporarily blocked FXPrimus IPO. FXPrimus originally wanted to aim for 225 million USD valuation post-IPO, a quite nice goal when the company's revenues have grown steadily in the past year. However, FXPrimus main market is in Southeast Asia and China, while it seems that ASIC wanted to prevent Australian brokerages houses from utilizing their licenses to solicit clients abroad. Thus, although prospectus have gone out, but ASIC concerns prevent the IPO from going forward.

A follow-up report based on FXPrimus inside source refuted the story; it mentioned that it was not ASIC blocked the IPO, instead it was FXPrimus voluntary withdrawal of its own IPO. In light of ASIC view and considering the fact that Australia is not the focus of its business activities, FXPrimus decided to terminate the halfway-done IPO process.

Cyprus CySEC-licensed FXPrimus is a forex broker that provides ECN/STP trading services with five base currency: USD, EUR, GBP, AUD, and SGD. It is fairly popular in Malaysia, Singapore, China, Thailand, and Indonesia. FXPrimus total number of tradable accounts was 25,589 with total client equity of 43.3 million AUD in 2014.