MarketAxess Scores on Cap Raise (MKTX)

MarketAxess Holdings Inc. (NASDAQ: MKTX) has raised some $35 million from Technology Crossover Ventures. The financing involves the sale of preferred stock and warrants at a conversion price of $10.00 per share, which is a 34% premium to yesterday’s closing price on a simple basis.

The company also announced that its Board of Directors has adopted a three-year stockholder rights plan designed to protect the long-term value of the Company for its stockholders during any future unsolicited acquisition attempt.

MarketAxess is not as well known as some of the other equity platforms as it is an operator of an electronic trading platform for corporate bonds and for fixed-income securities.  This financing may help the company get its name farther out there.

Shares are actually up 2% on thin volume after the news.  At the end of the March 2008 quarter, the company had some $54.299 million in cash and equivalents and also had an extra $38.77 million listed in "long-term investments."  Prior to any dilution, its market cap was listed as $255 million.

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Jon C. Ogg
June 3, 2008