What is interesting is that this one may be difficult for Joe Public to play in. It may even be a bit difficult looking up a quote for some investors because the shares might not appear on all stock market quote systems immediately because it is not NASDAQ-listed nor NYSE-listed.
We are looking for about 6.3 million shares to be sold after a Thursday pricing with an expected price range of $16.00 to $18.00 per share.
BATS is one of our own TOP 17 IPOs TO WATCH IN 2012.
When Barron’s reported the deal it called BATS an attractive bet as a fast-growing electronic trading platform which has taken market share and crossed into new markets. It is also indicated around 17-times current earnings, and investors need to consider that this is a premium to both the NASDAQ’s and NYSE’s 12-times earnings multiples. The CBOE trades at almost 18-times trailing earnings.
The exchange claims to be the third largest exchange now with 10.9% market share in the U.S. per the company’s February share volume versus a market share of 10.7% a year ago. Its options trading called BATS Options reported a 2.8% market share compared to 1.7% a year ago with average daily matched volume of 483,306 contracts.
BATS operates two stock exchanges in the U.S., the BATS BZX Exchange and BATS BYX Exchange; BATS Options, a U.S. equity options market; and BATS Europe and Chi-X Europe, which operate FSAauthorized multilateral trading facilities.
The underwriting group is rather large. Lead underwriters are Citi, Morgan Stanley, Credit Suisse; additional underwriters are Deutsche Bank Securities, Wedbush Securities, J.P. Morgan, Bank of America Merrill Lynch, Raymond James, Sandler O`Neill & Partners, Rosenblatt Securities, and Nomura.
Here is the retail roadshow.
JON C. OGG
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