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BATS IPO Will Provide A Rare Stock Exchange IPO Opportunity


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BATS IPO – Details About BATS

 

BATS IPOThe BATS IPO, which is expected in March or April of 2012, provides a rare opportunity to buy an Initial Public Offering (IPO) of a stock exchange that trades financial instruments, such as stocks and options contracts.  BATS, which stands for Better Alternative Trading System, is officially known as BATS Global Markets and is based in just outside of Kansas City, in Lenexa, Kansas.  BATS currently operates two stock exchanges in the United States, the BZX Exchange and the BYX Exchange, collectively known as “The BATS Exchanges”.  As of February 2012, the BZX and BYX Exchanges accounted for between 11% to 12% of all United States daily equity trading volume, which makes the BATS stock exchange the number three stock exchange in the United States.

BATS gained approval from the United States Securities and Exchange Commission (SEC) in late 2011 to list securities on their stock exchanges.  BATS has aggressive growth plans, which includes listing of securities on their stock exchanges and continued expansion in international markets.  BATS owns and manages the largest European equities market, which is partly a product of the acquisition BATS made during 2011 of a similar rival stock exchange platform called Chi-X Europe.

What to Expect From The BATS IPO

The BATS IPO will be the first IPO to ever list on one of the BATS stock exchanges.  Part of the BATS growth strategy is to attract IPO listings from companies considering listing on the New York Stock Exchange (NYSE) or NASDAQ, by offering companies more favorable listing terms and pricing.  The BATS IPO will kick off their strategy of being an alternative stock exchange for companies looking to list their stocks on publicly traded exchanges.

The BATS IPO will be presented to the investment community during a two-week road show starting the week of March 5, 2012.  BATS is planning on pricing the BATS IPO shares the week of March 19, 2012, but the BATS IPO could be delayed until April, if market conditions are unfavorable.  According to documents filed in 2011, the BATS IPO could raise up to $100 Million.  Not surprisingly, the BATS stock will trade as ticker symbol “BATS”.

Although the BATS IPO is listing on the alternative BATS stock exchange, BATS has been able to sign up top tier Wall Street firms to act as lead underwriters for the BATS IPO, including Morgan Stanley, Citigroup Inc., and Credit Suisse Group.  The recent upsurge in stock prices have opened up an opportunity for the BATS IPO to be completed during a positive market environment.

The growth prospects and earnings outlook for BATS after the BATS IPO are hard to discern.  With trading volume on United States and European stock markets waning in recent months and BATS’ extremely low trading fees, revenue and earnings growth should be subdued at best.

As the first stock exchange IPO in United States over the past several years, the BATS IPO will be one of highlights on the IPO 2012 calendar.

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