The BATS IPO, which is predicted in March or April of 2012, provides a rare chance to buy an Initial Public Offering (IPO) of a stock exchange that trades financial instruments, such as stocks and options contracts. BATS, which stands for Better Alternative Trading System , is officially known as BATS World Markets and is based in just outside of Kansas City, in Lenexa, Kansas. It now operates 2 stock exchanges in the United States, the BZX Exchange and the BYX Exchange, known generally as “The BATS Exchanges”. As of February 2012, the BZX and BYX Exchanges accounted for between 11% to 12% of all US daily equity trading volume, which makes the BATS stock exchange the number three stock exchange in the United States.
BATS gained approval from the US Securities and Exchange Commission (SEC) in late 2011 to list instruments on their stock exchanges. The company has aggressive growth plans, which includes listing of instruments on their stock exchanges and continued expansion in international markets. It owns and manages the largest Western european securities market, which is partially a product of the acquisition BATS made during 2011 of a corresponding rival stock exchange platform called Chi-X Europe.
What To Expect From The BATS IPO
The BATS IPO will be the 1st IPO to ever list on one of the BATS stock exchanges . Part of the expansion strategy is to draw in IPO lists from firms considering listing on the New York Stock Exchange (NYSE) or Naz, by offering firms more favorable listing terms and pricing. They will kick off their strategy of being an alternative stock exchange for corporations looking to list their stocks on in public traded exchanges.
The initial public offering will be presented to the investment community in a two-week road show beginning the week of March 5, 2012. The company is figuring on pricing the BATS IPO shares the week of March 19, 2012, but the IPO might be delayed till April, if market conditions are unfavorable. According to documents filed in 2011, but it could raise up to $100 Million. As you might reckon, the stock will trade as ticker symbol “BATS”.
Though the BATS IPO is listing on the alternative BATS stock exchange, BATS has been able to sign up top tier Wall St firms to act as lead underwriters for the BATS IPO, including Morgan Stanley, Citigroup Incorporated, and Credit Suisse Group. The current upsurge in stock costs have opened up an opportunity for the BATS IPO to be finished during a positive market environment.
The growth prospects and takings outlook the company after the BATS IPO are tough to discern. With trading volume on United States and Western european exchanges fading in recent months and BATS Extremely low trading charges, income and revenues expansion should be subdued at the best.
As the first stock exchange IPO in United States over the past several years, the BATS IPO will be highlighted on the IPO calender this year.
Joe Freedman investigates the newest stock market news to draft a blog about stock tips on his penny stock site.
