LMAX Group has engaged Morgan Stanley and KBW to explore a potential IPO or sale that could value the London-based trading venue operator at up to five billion dollars, according to sources cited by CoinDesk on Friday. A Nasdaq listing is reportedly the preferred option, though a private sale, SPAC merger, or European IPO remain under consideration.
The proposed valuation represents nearly fifty times LMAX’s 2024 EBITDA of one hundred one million dollars and a fivefold increase from its July 2021 valuation of one billion dollars when J.C. Flowers acquired a thirty percent stake. However, earnings have only grown by roughly two-thirds during that period. LMAX reported 2025 trading volumes reached eight point two trillion dollars, up twenty-six percent, though corresponding earnings figures remain unpublished.
The valuation multiple appears steep compared to current market benchmarks. Deutsche Börse trades around sixteen to seventeen times EBITDA, while Kraken’s recent Deutsche Börse stake sale valued that exchange at six times revenue, down from its twenty billion dollar peak.
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FXnCO Insight
** The aggressive fifty-times EBITDA valuation signals LMAX is testing market appetite during elevated fintech multiples, but traders should watch for pricing adjustments as comparable venues face downward pressure.
Source: Finance Magnates