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Financial service provider Markit's IPO raises $1.28 bln

Markit said it priced its initial public offering at $24 per share, valuing the financial information service provider at about $4.3 billion.

Markit's IPO raised about $1.28 billion, after the company priced its enlarged offering of 53.5 million shares at the mid-point of its expected price range of $23 to $25 per share.

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The company, which competes with Bloomberg and Thomson Reuters, said the selling shareholders, including certain employees and members of management, sold all the shares in the offering.

The Nasdaq HQ in Times Square
Adam Jeffery | CNBC

Founded by Canadian Lance Uggla in 2001, Markit provides pricing and reference data and indices and valuation services. The company serves more than 3,000 institutional customers globally, including banks, hedge funds and asset managers.

Singapore state investor Temasek Holdings holds about a 10.47 percent stake in Markit through its wholly owned subsidiary, Esta Investments.

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Markit, which has more than 3,200 employees, also counts Bank of America, Deutsche Bank, and Goldman Sachs among its major stockholders.

These firms also use Markit's financial data and trade processing services.

Bank of America's stake in Markit will fall to 4.6 percent from about 8 percent after the IPO, while Esta Investments will trim its stake slightly to 10.38 percent.

Markit's profit attributable to equity holders fell about 21.5 percent to $39.8 million for the quarter ended March 31. Revenue rose about 14 percent to $259.4 million.

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The company's information unit, which offers products for independent valuations, trading, and liquidity and risk assessments, contributes about 49 percent of its revenue.

Markit is expected to debut on the Nasdaq on Thursday under the symbol "MRKT."

Bank of America/Merrill Lynch, Barclays, Citigroup, and Credit Suisse were among the lead underwriters for the IPO.

By Reuters

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