In March 2005, the International Securities Exchange broke new ground as the first securities exchange in the US to go public. Now the markets await the next round of exchange IPOs, with Bats Global Markets coming April 14. Bats’ shareholders are expected to generate just over $200 million in the IPO with an offering price between $17 and $19 per share. The company is expected to end up with a market cap of $1.72 billion.
It’s an interesting time for the exchange space, as exchange leaders jockey for the London Stock Exchange, as well as for geographic advantage. It’s also interesting, the amount of attention the LSEG is getting these days, when BATS holds the top spot in Europe for stocks.
Another exchange is also prepping for an IPO, the Bombay Stock Exchange, which intends to list next year, with an early estimated market cap of $1 billion. That deal could allow Deutsche Boerse to cash out twice in a year – once with its roughly 10 percent Bats stake it kept in the sale of the International Securities Exchange to Nasdaq and another 5 percent holding in BSE. The Singapore Exchange also owns a stake in BSE.
Not bad investments for Deutsche Boerse, an exchange looking for a much bigger prize.