FX Alliance (or FXall in short) successfully completed its anticipated IPO today. FXall trades on NYSE under the FX ticker. FXall had to slash its offered price to $12.00 from the originally expected range of $13.50-$15.50 to be able to attract enough investors.
FXall is an independent electronic foreign exchange platform, giving over 1,000 institutional clients a trading edge with choice of execution, end-to-end workflow management, and straight through processing. Latest Forex Magnates Quarterly Report described the institutional forex market, including FXall in great detail.
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FXall announced its IPO plans back in September 2011 and in then released some financial data. Previous forex IPOs of FXCM and Gain Capital were unsuccessful to say the least losing about 30% in value since the listing date. This may explain why FXall had to slash its price as much just to attract buyers. Another reason may be that FXall didn’t receive any proceeds from the listing as all the shares were offered by a group of selling stockholders, which includes Citigroup Technology Inc, Goldman Sachs Group , HSBC USA and Royal Bank of Scotland. Therefore current investors weren’t contributing to company’s available cash which is what typically investors do instead of just buying out previous shareholders.
FXall reported a net income of $18.3 million, up 14 percent from a year ago, for the nine months ended Sept. 30, 2011. Revenue was up 21 percent at $88.7 million. In the same period, FX Alliance’s average daily trading volume grew to $83.9 billion, representing about 2 percent of the global FX average daily trading volume.
Today’s closing price of $13.74 gives FXall value of about $390 million.