Tradeweb Capitalises on IPO Demand, Prices Shares at $27

Tradeweb Markets Inc., a global provider of fixed income, derivatives and ETF marketplaces, announced the pricing of its initial public offering (IPO) on Wednesday. For the 40 million shares of its Class A common stock, the company is offering it at a price to the public of $27 per share.

According to a report from Bloomberg today, the company has managed to raise $1.1 billion based on the above prices. Based on its filings, the IPO values the New York-based company at around $6 billion.

The price announced on Wednesday is higher than the previously anticipated price from the company, which had said it was targeting a range of $24-$26 per share. However, according to the Wall Street Journal which cites a source familiar with the matter, the company has upsized the deal due to high demand.

The shares are expected to begin trading on the NASDAQ Global Select Market under the ticker symbol "TW" today. In addition, Tradeweb offers underwriters a 30-day option to buy up to an additional six million shares of Class A common stock at the IPO price, less underwriting discounts, and commissions.

Tradeweb Plans to Buy Shares Back from Existing Stakeholders

As outlined in the statement, the New York firm plans to use the net proceeds from the offering to buy shares held by eight of the 11 banks that have stakes in the company. According to its registration statement filed with the Securities and Exchange Commission (SEC), this includes Bank of America Corp., Goldman Sachs Group Inc., Morgan Stanley, and UBS Group AG.

The IPO is expected to close on the 8th of April 2019, assuming that the customary closing conditions have been satisfied. Following the closing of the offering, Refinitiv, which had a 51 percent stake in the company before the IPO, will continue to own a controlling interest in Tradeweb.

As Finance Magnates reported, the IPO was first announced towards the beginning of March, when the US company filed for a US public offering with the SEC. J.P. Morgan, Citigroup, Goldman Sachs & Co. LLC and Morgan Stanley, are together leading the offering.