In a rare move in the financial exchange world, Miami International, the parent company of the MIAX exchange, is coming public and is expected to start trading on the New York Stock Exchange as soon as Aug. 14.
Miami International is looking to raise $315 million by offering 15 million shares. The price range for the IPO is between $19 and $21 per share. The company intends to use the proceeds to repay debt and for other corporate purposes.
Miami International has been pursuing plans for an IPO since 2022. It competes with CME Group (CME) and Intercontinental Exchange (ICE).
Notably, the exchange operator commands a substantial 16.4% market share in the U.S. options market through its four fully automated electronic options exchanges with over 9 billion option contracts traded since inception until June 30, 2025. Overall, it is the 14th-largest global derivatives exchange operator with an international presence via its ownership of the Bermuda Stock Exchange.
Stable Revenue Growth With Inconsistent Profitability
For the first three months ended March 31, 2025, Miami International reported revenues of $327.1 million, up 19.9% from the previous year. The company ended 2024 with revenues of $1.1 billion compared to $1.04 billion in 2023.
Profitability tells a much less even story. Losses widened to $0.34 per share for the first three months of 2025 compared to $0.09 per share in the prior year. Yet, for the full year of 2024, the company reported earnings per share of $1.68, compared to a loss of $0.37 per share in 2023. The company reported revenue of $797.9 million in 2022 with earnings of $1.05 per share.
Net cash from operating activities for the first quarter stood at $11.2 million as the company closed the quarter with a cash balance of $277.5 million.
Total options revenue per contract improved to $0.106 from 3.2 billion equity and ETF market contracts in Q1 2025 from $0.078 and 2.6 billion contracts in Q1 2024. Overall, average daily volume of option contracts increased to 53.6 million from 43.3 million in the year-ago period.
Strengths, Opportunities & Issues
Miami International has established itself as a significant force in the exchange industry through its proprietary, low-latency trading technology, broad experience in multiple asset markets, and close working relationships with leading market participants. Further, the group’s recent expansion into cryptocurrencies and digital assets, supported by targeted acquisitions and the introduction of a physical options trading floor in Miami, is viewed as an important potential driver of future growth.
Additionally, the company’s broader growth agenda is centred on strengthening its options exchange business, building greater depth in its futures operations, and extending the reach of its cryptocurrency and digital asset offerings internationally through the Bermuda Stock Exchange and The International Stock Exchange Group.
However, despite these opportunities, the firm’s operations are not without vulnerabilities. A notable share of trading volumes is dependent on a small number of large ERP partners, and its concentration in U.S. derivatives markets leaves it exposed to shifts in that segment. Further reliance on clearing services and margin requirements tied to its Dorman Trading activities also adds to operational risk. In addition, heightened regulatory scrutiny and the growing complexity of cybersecurity threats could present meaningful challenges to the pace and scope of its expansion plans.
The Bottom Line on the Miami International IPO
Miami International is operating in a growing market globally with a strong presence in its domestic market of the United States. Although the rate of revenue growth can be a tad higher, sustained profitability should be a key priority of the company, especially in a relatively capital-light business.
Yet, its operating metrics are solid, and its proactiveness to expand into different market segments makes Miami International a company whose IPO can be considered as a viable investment option.
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
