Exchange business Bats Global Markets is set to raise up to $113.3m after it set its initial public offering range at $16 per share to $18 per share, the company’s Securities and Exchange Commission filing said yesterday.
The company will list on its own Bats Exchange and follows reports that all-electronic cash equities exchange peer Direct Edge might also reach an exit through a flotation or trade sale. Direct Edge is owned by Knight Capital Group, Goldman Sachs, Citadel and the ISE.
The Bats exchange is issuing nearly 6.3 million shares. US banks Bank of America, Citigroup, Credit Suisse, Deutsche Bank, Lehman Brothers Holdings, Merrill Lynch and JPMorgan all own more than 5% of Bats. Other shareholders of more than 5% are Getco Strategic Investments, a market maker, which is the largest shareholder, with 15%, Lime Brokerage Holdings, a trading platform, now part of financial services firm Wedbush Company, Strategic Investments, a holding company, and Tradebot, a broker-dealer,
Bats had revenues of $926.6m and net income of $23.5m in 2011.
The advisers on the flotation are Morgan Stanley, Citigroup, Credit Suisse, DeutscheBank, Wedbush Securities, JP Morgan, BofA Merrill Lynch, Raymond James, Sandler O’Neill, Rosenblatt Securities and Nomura.