BATS Global Markets Prices IPO at Top Range, Valued at $1.8 Billion

The new valuation of BATS Global Markets is materially higher than the $760 million of 4 years ago.

BATS Global Markets has announced the initial results from its listing on Bats BZX Exchange. The company has increased the size of its offering amid healthy demand with the initial consideration to post 11.2 million shares being amended to 13.3 million shares.

With a price of $19 per share the initial public offering of BATS Global Markets is valuing the company at about $1.8 billion. This is materially higher than the $760 million value at which the company was aiming to go public only 4 years ago.

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The IPO will raise $253 million for the shareholders which are selling their stakes

Since its first attempt to list in 2012, the company has merged with Direct Edge and added to its portfolio electronic communications network (ECN) for trading foreign exchange Hotspot, which it acquired from KCG Holdings in 2015 for $365 million.

The IPO will raise $253 million for the shareholders which are selling their stakes with an over-allotment option for a purchase of up to an additional 1,995,000 shares. BATS Global Markets will not receive any proceeds from the sale of any shares by the selling stockholders. The offering is expected to close on April 20, 2016.

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First attempt for an IPO in 2012

The first attempt for an IPO of BATS Global Markets was characterized by a computer glitch that forced the company to withdraw its IPO. The systems of the exchange halted and the shares of the company were halted for trading about 90 minutes after the opening bell.

At the time BATS listed 6.3 million shares but 90 minutes into the trading day a glitch caused the company’s stock to be quoted as low as 0.02 cents. The glitch spread into shares of Apple Inc, where a single trade for 100 shares that was executed on one of BATS exchanges sent the shares of Apple tumbling over 9 percent.

The transactions were subsequently all cancelled alongside with the IPO itself.

Last year BATS Global Market appointed Chris Concannon as Chief Executive Officer, succeeding Joe Ratterman. Before joining BATS, Concannon served as president and chief operating officer of global electronic market maker Virtu Financial for about five years.

Mr Concannon is now opening a new page in the history of BATS Global Markets as the firm continues growing its impact on global exchanges and the foreign exchange space with its Hotspot subsidiary.

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