Well, despite the rantings of the end of the world crowd a few weeks ago, IB earnings are out and quite impressive. All the more amazing considering the wild option trading that took place , and the opportunity to get creamed if you misplaced a decimal point. Stock up, and would be up a lot more if not for the secondary issuance.
Interactive Brokers Group Inc. (IBKR) on Thursday registered with the Securities and Exchange Commission to sell up to 50 million Class-A common shares in a best-efforts offering with a minimum bidding price of $33.50 a share. The public offering price and allocation of shares will be determined primarily by an auction process conducted by the placement agents and other securities dealers participating in this offering, according to the company's prospectus. The Greenwich, Conn., automated electronic marketplace operator said it intends to use the net proceeds from the offering to purchase membership interests representing about 12.5% of the outstanding membership interests in IBG LLC from IBG Holdings LLC. IBG Holdings LLC will, in turn, use such sale proceeds to redeem membership interests held by its members, who include 62 of Interactive Brokers Group's executives and employees. W.R. Hambrecht is listed as the leading placement agent for this offering.
On first read I didn't notice the 33.50 min bid. Damn. Well, unless they are blowing smoke, that may be an indication that they won't sell at what they perceive to be a discount to fair value, especially if they don't NEED the money.
No , it's in the filing. I think my analysis is correct. We'll see. CC at 5:30, maybe they mention it.
If they don't get 33.50 it looks like they still sell the stock at the minimum bid which could be 20 bucks for all we know
Maybe you are right, not clear why they would sell a few shares at a higher price Here's the text "After the close of the markets on the day of the auction, an approximately 30 minute live auction will commence process will be used to determine a clearing price. If a clearing price is achieved, shares will be allocated on a price and time priority basis, unless the Company decides to sell shares at a price below the clearing price (but at least equal to the minimum bid price). In this case, shares would be allocated on a pro-rata basis. If a clearing price is not achieved, all shares bid for will be sold at the minimum bid price".