Discussion in 'Wall St. News' started by USAtrader, Nov 27, 2006.
I hope the customers get some shares.
W.R Hambrect do open IPo's.
OpenIPOÂ® is an innovative auction process for distributing stock to individuals and institutions through a more efficient and equitable process. The auction process allows shares of an initial public offering to be allocated in an impartial way. All successful bidders pay the same price per share.
The OpenIPOÂ® auction, for example, levels the playing field in initial public offerings, allowing individuals and institutional investors to bid online for shares of an IPO. All investors end up paying the same price â a price determined by the auction. The OpenBookÂ® auction for corporate bonds, is an online system that offers transparent, real-time price discovery. OpenFollowOnÂ® auction extends the transparency and real-time price discovery of the OpenBook auction to follow-on equity offerings allowing interactive bidding and gives investors a view into the book as it builds.
OpenIPO: Pro-Rata Allocation
Hereâs a quick example:
IronBit.com offers 1 million shares at a projected price range of $8â$13. Mr. Smith wants IronBit.com shares, so he bids for 300 shares at $12 per share.
After collecting all bids, WR Hambrecht + Co conducts the OpenIPOÂ® auction. Working from the highest bid toward the lowest, the auction finds that at $12, 1 million IronBit.com shares are bid for. So $12 becomes the âclearing priceâ because investors wanted at least 1 million shares at $12. This amount also represents the maximum public offering price for IronBit.com shares. So Mr. Smith receives shares of IronBit.com â but how many?
Because investors wanted exactly 1 million shares at $12, everyone bidding at least $12 receives the number of shares they bid for, as follows:
At an offering price of... IronBit.com received bids at or above the offering price for... And successful bidders receive... So, of the 300 shares Mr. Smith bid for, he receives...
$12/share 1 million shares 100% of their bid 300 shares
If the number of shares bid for exceeds the number of shares in the offering, WR Hambrecht + Co allocates on a pro-rata basis. Under these circumstances, allocations will be rounded to multiples of 100 or 1,000 shares, depending on the size of the bid.
If IronBit.com chooses to reduce the offering price below the clearing price, the following would happen:
At an offering price of... IronBit.com received bids at or above the offering price for... And successful bidders receive approximately... So, of the 300 shares Mr. Smith bid for, he likely receives...
$11/share 1.25 million shares 80% of their bid
(1 million Ã· 1.25 million = 0.80) 200 shares
$10/share 1.50 million shares 67% of their bid 100 shares
$9/share 1.75 million shares 57% of their bid 100 shares
$8/share 2 million shares 50% of their bid 100 shares
For additional information about pro-rata allocation and rounding, please refer to the Plan of Distribution in the applicable prospectus.
Interactive Brokers Group files for $500 mln IPO
Mon Nov 27, 2006 9:31am ET146
WASHINGTON, Nov 27 (Reuters) - Interactive Brokers Group Inc., an automated global electronic market maker and broker, filed with regulators on Monday to raise up to $500 million in an initial public offering of its Class A common stock.
The Greenwich, Connecticut-based company said in a registration statement with the U.S. Securities and Exchange Commission that WR Hambrecht & Co. and E Trade Securities are underwriting the IPO.
Â© Reuters 2006. All Rights Reserved.
I noticed there is no mention of this on their web site. I wonder if it is suppose to be a secret?
their employees know nothing either - quite typical for a larger brokerage.
You are buying 5% of a holding company for $500m . Is a brokerage with $3.5bn in customer deposits worth $10bn. Doesn't say if you are getting exposure to Timber Hill and the stakes in Box and One Chicago.
UPDATE 2-Interactive Brokers Group files for $500 mln IPO
Mon Nov 27, 2006 10:27am ET26
WASHINGTON, Nov 27 (Reuters) - Interactive Brokers Group Inc., an automated global electronic market maker and broker, filed with regulators on Monday to raise up to $500 million in an initial public offering.
Proceeds from the auction of the company's shares will mainly go to Interactive Brokers' current owners, including Chief Executive Thomas Peterffy.
The Greenwich, Connecticut-based company said in a registration statement with the U.S. Securities and Exchange Commission that WR Hambrecht & Co. and E*Trade Securities were underwriting the IPO of Class A common stock.
Interactive Brokers specializes in routing orders and executing and processing trades in securities, futures and foreign exchange instruments on more than 60 electronic exchanges and trading venues around the world.
In July, the Chicago Board Options Exchange, said Interactive Brokers was joining it and several other partners in trying to set up a stock exchange in early 2007.
After Interactive Brokers' IPO, it will be a holding company and its primary asset will be about 5 percent of the equity interests in IBG LLC, the Connecticut limited liability company that is the current holding company for its businesses.
The company said it will use an OpenIPO process for the offering. The share price and the allocation of the shares will be determined primarily by an auction process.
It intends to list its stock on Nasdaq under the symbol "IBKR".(IBKR.O: Quote, Profile, Research).
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