Data tycoon worth £450m on float success pledges he’s staying put

 

Markit, the financial data giant created in a converted barn in Hertfordshire 12 years ago, has gone public on the Nasdaq stock market, making a multi-millionaire of its founder and turning dozens of its top staff into millionaires.

Markit priced its shares at $24 and increased the number being sold by 17 per cent to satisfy high demand. At the offer price Markit, which is headquartered in the City of London, is valued at $4.28bn. The shares rose roughly 11 per cent on their market debut in New York.

Lance Uggla, 52, Markit’s chairman and chief executive, is worth about £450m following the float. Mr Uggla is a Canadian who ran the London operations of the broker TD before founding Markit. Asked if he would stick around after the float, he said: “I did not sell anything in the IPO - I really do feel this is th enext step. I hope I’m here to lead the company for many more years to come.”

A further 60 executives and senior managers, many of whom sold their young data businesses to Markit, each have stakes worth at least $1m. Many are London and Home Counties entrepreneurs.

Markit, best known for its monthly purchasing managers’ indices which signal growth in the manufacturing, construction and services sectors ahead of official data, has turned into a significant rival to the older financial data companies Thomson Reuters and Bloomberg.

While Thomson Reuters is valued at more than $29bn and Bloomberg founder Michael Bloomberg is rated the 16th richest man in the world at $34 bn, Markit hopes its share float will give it the fire power to outgrow its rivals. It raised no new cash through the offer.

Markit is also keen to exploit the questions which have been raised over the use of rivals’ messaging systems in the benchmark rigging scandals around Libor and foreign exchange trading.

The other big winners from the flotation are the investment banks who are big backers of Markit and owned sizeable stakes in the business.  Between them the banks sold around 35 million shares of the total 53 million shares in the offer which saw them collect more than $840 m.

No fewer than 10 of the investor banks also acted as advisers on the flotation. They were BoA Merrill Lynch, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley and UBS. They have the option to add a further 8 million shares to the offer if trading goes well.

The Singapore state investor Temasek Holdings has a stake of more than 10 per cent in Markit through its subsidiary, Esta Investments.

Markit’s customers include banks, hedge funds, asset managers, central banks, regulators, auditors, fund administrators and insurance companies.

Founded in 2003, Markit employs more than 3,000 people in 10 countries.

Markit reported revenue of $947.9m for 2013, up 10 per cent. Its profit attributable to equity holders fell about 21.5 per cent to $39.8m for the three months ended 31 March, while revenue rose about 14 per cent to $259.4m.that Dubai’s Emirates airline had cancelled an order for 70 A350 aircraft. The planes  would have been powered by Rolls engines and the order book was hit by £2.6bn.

At the event for investors, Mr Rishton also updated them over the way Rolls accounts for the sale of equipment and services in a division known as TotalCare. The accounting regulator demanded a reassessment of its 2013 figures, which saw nearly £40m wiped off last year’s profit.

Analysts were in agreement that the buyback was the best news in some time from Rolls. Espirito Santo said it showed management was “committing itself to very tight capital discipline”, while Ben Bourne at the broker Liberum  pointed out that there had  “been plenty of food for the bears recently” so the reiteration of guidance would be “well received”. He added: “No material acquisitions are planned, which is a relief as many investors were concerned they would make another play for Wartsila post July, requiring more equity.”

Sash Tusa, analyst at Edison Investment Research, said: “We are pleased that the company is responding to the market by returning circa £1bn to shareholders.”

Rolls powers over 30 types of aircraft and is the world’s second-biggest manufacturer of military aero-engines, and it is also developing its nuclear business. Earlier this week it signed a memorandum of understanding with CGN, a Chinese nuclear group, to provide engineering support.

PROMOTED VIDEO
News
video
Life and Style
tech
Sport
Jodie Stimpson crosses the finishing line to win gold in the women's triathlon
Commonwealth games
Arts and Entertainment
While many films were released, few managed to match the success of James Bond blockbuster 'Skyfall'
film
News
John Barrowman kisses his male “bride” at a mock Gretna Green during the Commonwealth Games opening ceremony
peopleBarrowman's opening ceremony message to Commonwealth countries where he would be sent to prison for being gay
Arts and Entertainment
Jamie Dornan stars as Christian Grey in the Fifty Shades of Grey movie
filmFirst look at Jamie Dornan in Fifty Shades of Grey trailor
Life and Style
Phillips Idowu, Stella McCartney and Jessica Ennis
fashionMcCartney to continue designing Team GB Olympics kit until 2016
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Sport
Shinji Kagawa and Reece James celebrate after the latter scores in Manchester United's 7-0 victory over LA Galaxy
football
Voices
voicesGood for Lana Del Rey for helping kill that myth, writes Grace Dent
Sport
Farah returns to the track with something to prove
Commonwealth games
Life and Style
fashion Designs are part of feminist art project by a British student
Arts and Entertainment
The Tour de France peloton rides over a bridge on the Grinton Moor, Yorkshire, earlier this month
film
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Junior Research Analyst - Recruitment Resourcer

£18000 - £20000 per annum + OTE £25K: SThree: SThree Group has been well estab...

Senior Analyst - Financial Modelling

competitive: Progressive Recruitment: This really is a fantastic chance to joi...

Associate CXL Consultant

£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...

Business Anaylst

£60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: Business Anal...

Day In a Page

Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

Screwing your way to the top?

Good for Lana Del Rey for helping kill that myth, says Grace Dent
Will the young Britons fighting in Syria be allowed to return home and resume their lives?

Will Britons fighting in Syria be able to resume their lives?

Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

Beyoncé poses as Rosie the Riveter

The wartime poster girl became the ultimate American symbol of female empowerment
The quest to find the perfect pair of earphones: Are custom, 3D printed earbuds the solution?

The quest to find the perfect pair of earphones

Earphones don't fit properly, offer mediocre audio quality and can even be painful. So the quest to design the perfect pair is music to Seth Stevenson's ears
US Army's shooting star: Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform

Meet the US Army's shooting star

Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform
Climate change threatens to make the antarctic fur seal extinct

Take a good look while you can

How climate change could wipe out this seal
Should emergency hospital weddings be made easier for the terminally ill?

Farewell, my lovely

Should emergency hospital weddings be made easier?
Man Booker Prize 2014 longlist: Crowdfunded novel nominated for first time

Crowdfunded novel nominated for Booker Prize

Paul Kingsnorth's 'The Wake' is in contention for the prestigious award
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned

Vladimir Putin employs a full-time food taster

John Walsh salutes those brave souls who have, throughout history, put their knives on the line
Tour de France effect brings Hollywood blockbusters to Yorkshire

Tour de France effect brings Hollywood blockbusters to Yorkshire

A $25m thriller starring Sam Worthington to be made in God's Own Country
Will The Minerva Project - the first 'elite' American university to be launched in a century - change the face of higher learning?

Will The Minerva Project change the face of higher learning?

The university has no lecture halls, no debating societies, no sports teams and no fraternities. Instead, the 33 students who have made the cut at Minerva, will travel the world and change the face of higher learning
The 10 best pedicure products

Feet treat: 10 best pedicure products

Bags packed and all prepped for holidays, but feet in a state? Get them flip-flop-ready with our pick of the items for a DIY treatment
Commonwealth Games 2014: Great Scots! Planes and pipers welcome in Glasgow's Games

Commonwealth Games 2014

Great Scots! Planes and pipers welcome in Glasgow's Games
Jack Pitt-Brooke: Manchester City and Patrick Vieira make the right stand on racism

Jack Pitt-Brooke

Manchester City and Patrick Vieira make the right stand on racism
How Terry Newton tragedy made iron men seek help to tackle their psychological demons

How Newton tragedy made iron men seek help to tackle their psychological demons

Over a hundred rugby league players have contacted clinic to deal with mental challenges of game