ThinkMarkets To Go Public; SPAC Deal – FG Acquisition Corp
ThinkMarkets, a brokerage firm based in Australia, is set to go public through a reverse merger deal with FG Acquisition Corp, a blank check company listed in Canada.
The CEO of ThinkMarkets, Nauman Anees, expressed excitement about the company’s transition to a public entity and emphasized the potential for growth. Following the merger, Nauman Anees will assume the role of CEO for the merged entity, while the co-founder, Faizan Anees, will become the President.
After an unsuccessful attempt at an initial public offering (IPO) in Australia in 2020, ThinkMarkets has opted for a different path to going public by entering into a special purpose acquisition company (SPAC) deal. While media reports suggested that ThinkMarkets raised $15 million in a pre-IPO funding round and had plans to raise around $100 million with a market capitalization of $300 million, the company has not officially verified these specific details. The decision to pursue the SPAC deal allows ThinkMarkets to move forward with its public listing aspirations.
In the recent deal, ThinkMarkets has been valued at $160 million before additional funding, resulting in an estimated pro forma enterprise value of approximately $190 million. As part of the agreement, ThinkMarkets will become a fully owned subsidiary of the SPAC, and the majority of issued Common Shares will be held by its shareholders.
To support its growth strategy, working capital, and general corporate purposes, the SPAC plans to offer a private placement of convertible debentures, aiming to raise $20 million.
Larry Swets, Jr., CEO of FGAC, expressed enthusiasm about the acquisition, considering ThinkMarkets as an attractive investment opportunity in the global multi-asset online brokerage industry. He believes that ThinkMarkets has the potential to become a leader in this segment and has demonstrated a clear growth trajectory.
Previously, eToro, another significant player in the brokerage industry, pursued a similar SPAC deal. However, they were unable to finalize the listing terms before the deadline, resulting in the failure of that particular deal.
ThinkMarkets provides retail trading services and has expanded its institutional presence through a liquidity provisioning platform launched in 2021. The company boasts 138,500 clients across 165 countries and achieved a 24 percent compound annual growth rate (CAGR) with $62 million in revenue generated in 2022.
While headquartered in Australia, ThinkMarkets has a strong international presence. It recently obtained a license in New Zealand, further solidifying its position in the Asia Pacific region. The company also entered the Japanese market through the acquisition of a local foreign exchange (FX) firm.