ThinkMarkets IPO dreams fade as merger withdrawal prompts uncertainty in the financial market landscape. Exclusive insights revealed.
ThinkMarkets IPO dreams fade as merger withdrawal prompts uncertainty in the financial market landscape. Exclusive insights revealed.
ThinkMarkets IPO dreams fade as merger withdrawal prompts uncertainty in the financial market landscape. ThinkMarkets, the Australia/London-based Retail FX and CFDs broker, has decided to abandon its planned merger with particular purpose acquisition company FG Acquisition Corp (TSE: FGAA.U), effectively halting ThinkMarkets IPO aspirations, at least for now.
The merger, initially revealed in mid-May, aimed to take ThinkMarkets public on the Toronto Stock Exchange with a valuation of around USD $160 million, accompanied by an injection of over $100 million in cash. A formal announcement on the cancellation of the merger is expected imminently, with the decision appearing to be mutual. The majority of FG Acquisition’s public shareholders opted for cash refunds earlier in the summer, leaving insufficient funds to support the deal.
The cancellation aligns with the looming November 30 deadline, forcing the parties to either complete the merger, agree to a second extension, or cancel the transaction altogether.
Aside from shareholder dynamics, regulatory hurdles further complicated the deal. Issues with the adequacy of disclosure by ThinkMarkets in the prospectus, including updated financial and operating information, posed challenges in gaining approval from the Ontario Securities Commission. As exclusively reported by FNG in early November, FG Acquisition had to withdraw its prospectus.
The future course for the involved entities remains uncertain. FG Acquisition, facing a July 2024 deadline, must identify and finalize an alternative acquisition target, necessitating additional funding. Failure to secure funds may lead to the dissolution of the company, with the remaining cash returned to shareholders. Conversely, ThinkMarkets will persist as a private entity under the control of brothers Faizan and Nauman Anees, who serve as president and CEO, respectively. The developments mark a significant twist in the narrative of ThinkMarkets’ IPO journey, leaving stakeholders and industry observers awaiting further details on the potential reevaluation of strategic directions by both parties.
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