ThinkMarkets, a brokerage firm headquartered in Australia and operated by Think Financial Group Holdings Limited, is set to go public on the Toronto Stock Exchange through a merger deal with blank check company, FG Acquisition Corp.
Larry G. Swets, Jr., Chief Executive Officer of FGAC, said:
We are excited to present this qualifying acquisition to our shareholders and believe that ThinkMarkets provides a compelling investment opportunity in a multi-asset online brokerage with a global presence. We are confident that the ThinkMarkets team is positioned to take leadership in this segment and has demonstrated a clear path for growth. We look forward to supporting Nauman and the ThinkMarkets team as they begin their journey as a public company.
ThinkMarkets Co-Founder and CEO Nauman Anees added:
We are excited to start our journey as a public company with the support of FGAC and look forward to a new chapter of growth in the business.
ThinkMarkets specializes in providing retail trading services and has expanded its institutional presence through a liquidity provisioning platform launched in 2021. The recent announcement highlighted that the broker serves 138,500 clients across 165 countries. It experienced a compound annual growth rate (CAGR) of 24 percent and generated $62 million in revenue in 2022.
As part of the reverse merger agreement, ThinkMarkets has been valued at $160 million based on its pre-money valuation, with an estimated pro forma enterprise value of around $190 million. Following the merger, ThinkMarkets will become a wholly-owned subsidiary of the Special Purpose Acquisition Company (SPAC), with ThinkMarkets shareholders holding the majority of the issued and outstanding Common Shares.
Moreover, the SPAC plans to raise $20 million through a private placement of convertible debentures to support its growth strategy, working capital, and general corporate purposes.
Earlier this year, ThinkMarkets further solidified its presence in the Asia Pacific region by obtaining a license in New Zealand. This came after the broker entered the Japanese market the previous year by acquiring a local forex firm.
