NEW YORK: Shares of BATS Global Markets Inc jumped as much as 23% in their debut on the company’s own exchange - redemption after a botched attempt to go public in 2012.
The offering of 13.3 million shares was priced at the top of the expected range of US$17-US$19 each, raising US$252.7mil (RM986.1mil) and making it the biggest US-based IPO so far this year.
All shares were offered by shareholders. BATS, the second-biggest US exchange by volume, did not raise any money.
BATS’ shares hit a high of US$23.30 in early trading on the BATS BZX exchange on Friday, valuing the company at US$2.22bil (RM8.66bil).
In 2012, a series of glitches forced the company to withdraw its IPO soon after the stock started trading. That offering had valued the company at US$760mil (RM2.96bil).
BATS, an acronym for “better alternative trading system”, was formed in 2005 as an alternative to the New York Stock Exchange and the Nasdaq, in response to increased consolidation in the sector.
The company operates four US exchanges, accounting for a little over 20% of market volume, putting it just behind the New York Stock Exchange and ahead of the Nasdaq.
BATS’ IPO comes at a time when the industry is under pressure to consolidate amid weak trading volumes and shrinking margins.
The proposed merger of London Stock Exchange Group Plc and Deutsche Börse, to become one of the largest exchange operators in Europe, is the most recent among a flurry of deals.
Kansas City, Missouri-based BATS reported net income of US$82.2mil (RM320.7mil) for 2015, up from US$49.2mil in 2014. Revenue rose to US$1.78bil (RM6.94bil) from US$1.46bil.
Selling shareholders included Bank of America Merrill Lynch, Credit Suisse, Citigroup, Knight Capital and Goldman Sachs. - Reuters
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