ThinkMarkets Debut Uncertainty as FG Acquisition Corp. Withdraws Prospectus

ThinkMarkets’ stock market debut in Canada faces uncertainty as FG Acquisition Corp. withdraws its preliminary prospectus for a Special Purpose Acquisition Company (SPAC) deal, potentially delaying the listing by at least six months. Think Financial Group Holdings Limited, the operator of the ThinkMarkets brand, announced in May its intention to merge with SPAC for a debut on the Canadian TSX stock exchange, initially scheduled for July 2023.

While progress seemed promising in June, with SPAC partner shareholders accepting the acquisition of ThinkMarkets and the introduction of a copy trading app, the planned debut date has passed, and ThinkMarkets is yet to go public. This week, FG Acquisition Corp. officially withdrew the preliminary non-offering prospectus filed in May 2023. 

ThinkMarkets Debut Uncertainty

They plan to reapply with a new prospectus, as they have failed to submit the final prospectus within the required 180 days. ThinkMarkets remains optimistic about its debut in Canada, stating its commitment to completing the transaction and securing minimum commitments of $10 million from its SPAC partner. The company is preparing to showcase its achievements, expansion plans, and opportunities upon becoming a public entity in 2024. Notably, Think Financial’s previous attempts to go public, including a 2020 $300 million IPO plan in Australia, ended prematurely at the announcement stage. The company’s financial results for 2022 revealed higher revenues for its British subsidiary, TF Global Markets (UK) Limited, but a 7% decrease in operating profit and losses amounting to nearly $21 million over two years.

While there is hope for ThinkMarkets’ eventual TSX debut, the FX/CFD industry has seen numerous public listing announcements with limited successful outcomes. Only a handful of publicly traded firms, including CMC Markets, IG Group, Plus500, Interactive Brokers, Swissquote, Naga Markets, and XTB, have achieved this feat, with XTB’s last successful debut in 2016. Challenges such as third-party server hosting and reluctance to disclose financial details have hindered the public listing aspirations of many FX brokers, as noted by Andrew Saks, Head of Media & Analysis at ETX Capital. While the road to becoming a publicly traded company is riddled with obstacles, ThinkMarkets remains hopeful that its journey will lead to a successful debut.

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