ETF Securities prepares $1bn listing

ETF Securities is considering an initial public offering of shares worth $1bn, according to reports.

ETFS launched its first ETP, Gold Bullion Securities, in London and Australia in 2003. As commodity prices have boomed, the firm's assets have followed suit, growing nearly 150% since May 2009 to a total of $26.8bn at the end of February according to the latest BlackRock research.

The issuer is now said to have employed Citigroup and Bank of America Merrill Lynch to discuss its options, including a possible share listing.

All parties have refused to comment, although ETFS founder and chairman Graham Tuckwell revealed the issuer has a positive cash flow, meaning the IPO would not be necessary to raise cash. It does raise the question of potential mergers and acquisitions.

The reports come shortly after ETFS announced the development of its US sales team with two high profile appointments. The firm revealed then that it has plans for an "aggressive US business expansion".