Tags: Bats | initial | offering | stock

Bats Raises $101 Million in IPO, Pricing at Bottom of Range

Friday, 23 March 2012 12:14 PM

Bats Global Markets Inc., the third-largest U.S. stock exchange operator, raised $100.7 million in its initial public offering after selling shares at the bottom of the proposed range.

Bats said it sold 6.3 million shares for $16 each on behalf of existing stockholders. The Lenexa, Kansas-based company had offered them for $16 to $18, according to a regulatory filing. The stock will start trading tomorrow on the company’s own BZX Exchange under the symbol BATS.

The company, whose two venues account for about 11 percent of U.S. stock-trading volume, asked investors to pay about 16.9 times estimated 2013 earnings, said Diego Perfumo, an analyst at hedge fund adviser Equity Research Desk. That’s higher than analyst projections of 9.7 times and 8.7 times, respectively, for NYSE Euronext and Nasdaq OMX Group Inc., the biggest U.S. exchange operators, data compiled by Bloomberg show.

Owners of Bats including Citigroup Inc., Lehman Brothers Holdings Inc. and Credit Suisse Group AG will hold 71 percent of Bats’s Class A common stock while retaining a 79 percent voting stake after the IPO, according to the filing. Owners of Class B common stock in Bats get 2 1/2 votes apiece, while holders of the publicly traded Class A shares receive one vote each, the filing shows.

Almost half of the stock in the IPO was offered on behalf of the estate of Lehman Brothers, with another 1.1 million from Getco, according to the Bats filing. Morgan Stanley, Citigroup and Credit Suisse managed the sale.

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Friday, 23 March 2012 12:14 PM
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