Earlier this year, Virtu Financial Inc. was named as one of the 24/7 Wall St. Top 10 IPOs to Watch for 2014. We had the very first filing as one of a confidential filing matter with the SEC, but now Wall Street can count this one listed as officially coming to market after a Monday filing. The company will trade under the stock ticker VIRT on Nasdaq.
Virtu is one of the top market makers and liquidity providers in many markets. Its revenues are generated by buying and selling large volumes of securities and other financial instruments — high frequency trading and market making. Virtu even claims to make markets by providing quotations to buyers and sellers in over 10,000 securities and financial instruments on more than 210 different exchanges, markets and liquidity pools in 30 countries around the world.
Virtu’s underwriting group is rather large, and it would lead us to believe that more (perhaps much more) than just the nominal $100 million mentioned in the filing. Goldman Sachs, J.P. Morgan and Sandler O’Neill are the book runners. Co-managers are listed as Barclays, BMO Capital Markets, Citigroup, Credit Suisse and UBS.
Be advised this IPO is for Class A shares only and all the shares being sold are being sold by the company, but there will be four classes of stock. The Class A common stock and the Class C common stock will have one vote per share. The Class B common stock and the Class D common stock will have 10 votes per share. The filing says”
TJMT Holdings LLC, an affiliate of Mr. Vincent Viola, our Founder and Executive Chairman, will hold all of our issued and outstanding Class D common stock after this offering and will control more than a majority of the combined voting power of our common stock.
The filing also said about its financials:
For the years ended December 31, 2013 and 2012, our total revenues were approximately $664.5 million and $615.6 million, respectively, our trading income, net, was approximately $623.7 million and $581.5 million, respectively, our Adjusted Net Trading Income was approximately $414.5 million and $366.3 million, respectively, our net income was approximately $182.2 million and $87.6 million, respectively, and our Adjusted Net Income was approximately $215.4 million and $188.3 million, respectively. For the year ended December 31, 2013, we earned approximately 27% of our Adjusted Net Trading Income from Americas equities, 11% from EMEA equities, 11% from APAC equities, 23% from global commodities, 20% from global currencies and 9% from options, fixed income and other securities.