Miami International launches US$315m NYSE IPO recap
Miami International is seeking to raise up to US$315m from an NYSE IPO that is integral to recapitalizing the business after Warburg Pincus extended a loan that funded an acquisition.
JP Morgan, Morgan Stanley and Piper Sandler launched marketing this morning on the all-primary offering of 15m shares at US$19-$21 for pricing next Wednesday, August 13.
The electronic equities and options exchange is using US$140m of the proceeds to fully repay the secured loan owed to Warburg Pincus.
The loan was structured with warrants equal to a 4.2% post-offer stake that are puttable if the size of IPO is less than US$250m, a protection that now seems unlikely to be exercised.
At launch, Wellington Management agreed upfront to invest US$40m in the IPO, providing some early momentum in the bookbuild.
Miami operates four options exchanges, a cash equities exchange, two futures exchanges, and an international exchange, providing access to a growing array of financial products and allowing after-hours trading of cash equities.
Miami used the Warburg loan to launch the MIAX Sapphire options exchange as well as to acquire BSX exchange owner International Stock Exchange. BSX broadened the company's suite of products to include international listings, insurance-linked securities, debt securities, and REITs.
In July 2024, Miami signed a 10-year agreement with Bloomberg to develop options and futures tied to indexes, beginning with the planned launch of the Bloomberg B500 US large cap index in Q4 2025.
Miami is phenomenally profitable and growing rapidly. In the trailing 12 months ended June 30, the exchange generated US$137m of adjusted Ebitda on net revenue of US$347.7, including growing net revenue in the first half of 2025 by nearly 60% to US$196.5m.
The company is going public against a backdrop that has exchanges trading at or near all-time highs.
At the US$20.00 midpoint of talk, Miami is targeting an enterprise value of US$1.6bn, valuing it at 9.5-times 2026 Ebitda. That is half the median 18.5-times multiple at which comparable exchanges CBOE Global Market, CME Group, Intercontinental Exchange and Nasdaq currently trade.