Firm discloses financial results, future plans
Interactive Brokers (IB) has filed with Securities and
Exchange Commission (SEC) to publicly offer an undisclosed
quantity of shares at a proposed maximum aggregate offering
price of $500m. The IPO was to take the form of an auction in
which the price per share would be determined by a process
based on a series of bids and offers prior to open trading.
The company also disclosed that it would look to enter new
markets with its intention to expand into new areas of
In IB's auction IPO, buyers would make bids while
underwriters find the highest price at which all shares could
be sold, though reserving the right to set the price lower. In
a traditional IPO, by contrast, the price for the new stock is
set after underwriters market the shares primarily to
institutional investors. In theory, auction IPOs do not exhibit
a first-day price jump on the first day of trading like the one
experienced by Nymex recently which saw the share price rise
125% on the first day.
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