IBKR is NOT using the proceeds to expand the business

Discussion in 'Stocks' started by demoship, May 1, 2007.

  1. All net proceeds of this offering will go to the current members of IBG LLC, including all of our
    executive officers and employee directors, rather than be used for corporate business purposes.
    We intend to use all net proceeds of this offering to purchase IBG LLC membership interests
    from IBG Holdings LLC, which will, in turn, use such proceeds to redeem a portion of the IBG Holdings
    LLC membership interests to be held by the current members of IBG LLC. Such redemptions will result in
    all net proceeds of this offering going to the current members of IBG LLC on a pro rata basis. Of this
    amount, more than 91.5% will go to our employee directors and executive officers. We do not anticipate
    using any net proceeds for corporate business purposes. See ‘‘Use of Proceeds.’’

    Page 31 of the prospectus..

    Is IBKR still a good IPO?

    Now I'm starting to rethink whether or not it's good, if they're selling part of the business simply because the current owners want to bail out of part of their stakes.
  2. S2007S


    i think there is too much hype behind this ipo...
  3. Also worth noting is that the new shareholders will have absolutely no voting rights at all. Voting (and most of the IPO proceeds) stays with their CEO.

    In short, IBKR is Thomas Peterffy going public, not IB.
  4. mde2004


  5. Yeah, we're idiots alright. I'm sure glad the "smart money" overpaid by 20%+.
  6. V-v-Vonage.... :( :(