CMC reportedly hires Goldman Sachs and Morgan Stanley for IPO

Former Conservative Party treasurer and founder of CMC Markets Peter Cruddas has reportedly hired Goldman Sachs – a shareholder in CMC – and Morgan Stanley to lead the spread-betting firm onto the London Stock Exchange.

The initial public offering could take place as early as this year, according to Sky News.

CMC, which specialises in bets on share price movements known as contracts for difference, was founded by Cruddas in 1989 with a £10,000 investment.

Analysts said that in a consolidating industry, it’s no surprise CMC is looking to float. They noted that spreadbettors are facing stiff competition in a fierce and mature market, where organic growth is becoming increasingly difficult to find.

In addition, they said CMC is well positioned to float and use fresh capital to expand the company further.

Goldman Sachs holds a 10% stake in the company.