Bats Global Markets Prices IPO at $19, Raising $250 Million

Henry Truc  |

Bats Global Markets priced its IPO at $19 on Thursday. The second-largest stock exchange in the US is planning to sell 13.3 million shares in the $252.7 million offering and begin trading on its own BZX Exchange on Friday. The IPO would value the company at a $1.8 billion market cap. Bats was founded in 2005 as an alternative trading system but became a registered stock exchange once it got the approval by the Securities and Exchange Commission.

The Lenexa, Kansas-based company says it holds a 21.4% share of the US equities market (behind NYSE and ahead of Nasdaq), and leads the ETF market with a 26.9% market share. It also operates BXTR, the largest European exchange with nearly 25% of the market.

Morgan Stanley (MS) and Citigroup (C) are acting as joint bookrunning managers and the representatives of the underwriters. BofA (BAC), Merrill Lynch, Credit Suisse (CS), Goldman Sachs & Co (GS), and J.P. Morgan (JPM) are acting as joint bookrunners, and Jefferies, Barclays (BCS), Deutsche Bank Securities (DB), Nomura (NMR), Rosenblatt Securities and Sandler O’Neill + Partners, L.P. are acting as co-managers of the offering.

For the broader market, the Bats debut will be the biggest initial offering of the year thus far and could potentially help to wake up a sleeping IPO market, which was virtually non-existent for anybody outside of the biotech space in the first quarter of 2015. But this isn't the first time Bats has tried to go public. The company had planned to IPO in 2012, but was forced to cancel after a software glitch fiasco caused Apple's (AAPL) stock price to fall 9%, and Bats' own shares to plunge from $15 to pennies.

Bats is currently led by Chris Concannon (pictured), who joined the company as President in December 2014, and then appointed CEO in March 2015.

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Companies

Symbol Name Price Change % Volume
ICE Intercontinental Exchange Inc. 96.86 2.67 2.83 5,111,620 Trade
BCS Barclays PLC 9.08 -0.07 -0.77 2,195,771 Trade
C Citigroup Inc. 78.79 -0.21 -0.27 9,056,594 Trade
MS Morgan Stanley 55.84 -0.09 -0.16 4,579,308 Trade
DB Deutsche Bank AG 11.04 0.02 0.18 5,973,885 Trade
GS Goldman Sachs Group Inc. (The) 237.08 -1.27 -0.53 1,718,742 Trade
NDAQ Nasdaq Inc. 116.20 1.80 1.57 530,378 Trade
NMR Nomura Holdings Inc ADR American Depositary Shares 5.06 -0.07 -1.36 98,934 Trade
AAPL Apple Inc. 324.95 0.08 0.02 20,028,447 Trade
JPM JP Morgan Chase & Co. 137.46 -0.42 -0.30 6,627,891 Trade

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