Interactive Brokers Initial Public Offering

Discussion in 'Wall St. News' started by version77, Apr 14, 2007.

  1. Dear Friends of Interactive Brokers:

    After 30 years of building our closely held company, we are ready for the next phase of our development. We believe that a public offering of our shares will provide us with greater name recognition and accelerate our growth. Accordingly, we are now launching the Initial Public Offering of 20 million shares of Interactive Brokers Group, Inc. ("IBKR"), and we expect the public offering price to be between $23 and $27 per share.

    Throughout our history, we have dedicated ourselves to building technology to provide liquidity and direct market access for our customers at very low costs. It is in this spirit that we are offering our shares in a Dutch auction through WR Hambrecht + Co's Open IPOTM system.

    IB Account Holders can participate in the IPO through our fully electronic IBIPO Dutch Auction System, or along with others may buy shares in the IPO through the participating broker of their choice. IB customers will find instructions on how to enter and cancel bids in the IBIPO Auction System at The IBIPO Auction System may be launched in Account Management under the Trading Access/IBIPO Auction tab.

    For the latest information on the IBKR IPO, including updates on the list of participating brokers, offering dates and an electronic copy of the prospectus you may visit our dedicated website

    An IBIPO auction is typically open for bids for one to two weeks prior to the closing date of the offering. Once the bidding concludes, WR Hambrecht + Co will assemble the bids and, working from highest to lowest, it will identify the first bid price that will sell all the offering's shares. This is the "clearing price" and will be the maximum price at which the issuing company will offer its shares. The issuing company and placement agents will then decide the price at which the issuing company will offer the shares, taking a number of economic and business factors into account in addition to the "clearing price."

    As always we greatly value your business and look forward to continuing to serve you with our premier technology and low trading costs.


    Thomas Peterffy
  2. How many shares should we buy?...:)
  3. TGM


    Has anyone ever participated in this kind of auction?

    I just wonder what the odds of me getting 3000 shares at 25? or 26?

    I gotta try and buy some just for the hell of it.

    This is how they sell flowers at the dutch flower auction (biggest in the world). I have never seen it done though
  4. lwlee


    I like IB since I use it which in itself should be a buy for me ie Peter Lynch's buy what you know.

    But is the asking price a good deal?

    I'm looking at other recent broker gone public and the charts look good. eftc, schw, amtd, oxps, cbot, cme, ice, nmx, nyse, nyx. In general, they're up from their IPOs. Some significantly more.

    I haven't looked at the fundamentals so if anyone has something bad to say please do.
  5. lwlee


    Didn't Google do a dutch auction? I remember there were some complaints but I guess no one complaining now that it's move up so much.
  6. Word of notice. If you get it, make sure IB deposit the shares before IBKR start trading. This is the first time they are doing this, so I have no idea how fast it will show up in your account. Incase, you want to flip it for a quick profit or flip it to cut loss.
  7. dj8899


    IB is first and foremost a market maker

    their second line of business is their brokerage
  8. Just another IPO at a Stock Market top.......
    Typical of many IPOs to come forth when the prices are high.

    I would wait until the market is much lower and the price of IB's is also much lower.

    Good night and good luck. :(
  9. dj8899


    how much would the tightening of spreads on the options market effect their profit? i think it's only a matter of time before 5 and 10 cent spreads are gone
  10. zdreg


    the whole incident was a scam by wall street. mainstream wall street was angry at google for going the dutch auction route and losing alot of fees. they forced the ipo at a lower price and then loaded up themselves because they understood the situation.
    #10     Apr 14, 2007