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Interactive Brokers IPO Goes Forward - IBKR $23-27 at Trader’s Narrative





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Speak of the devil! Interactive Brokers released a message just yesterday (thanks to Kryslon for the heads up in my previous post about the Interactive Brokers IPO). I’m glad to see that IB clients can bid on the initial public offering!

[Letterhead of Interactive Brokers]

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. Enclosed you will find a copy of IBKR’s preliminary prospectus as filed with the Securities and Exchange Commission. Complete details on the mechanics of the IBKR IPO are contained in the prospectus’ Plan of Distribution section.

IB Customers will find instructions on how to enter and cancel bids in the IBIPO Auction system at www.interactivebrokers.com/IBIPO. 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 web site IPO.Interactivebrokers.com.

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.

Sincerely,

Thomas Peterffy

thomas peterffy signature interactive brokers IBKR.png


And here is the amended S-1 with the changes in participating dealers.

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5 Responses to “Interactive Brokers IPO Goes Forward - IBKR $23-27”  

  1. 1 lazy

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    interactivebrokers.com/IBIPO and IPO.Interactivebrokers.com don’t work

  2. 2 Kryslon

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    My question about the open IPO is as such:

    When the auction is opened, are people from each brokerage bidding
    1) only for the shares allotted to that brokerage? Or,
    2) are people from each brokerage bidding for shares from the entire lot of 20M shares?

    For example if WRHambrecht allots itself 10M of the shares to be sold, are WRHambrecht customers bidding amongst themselves for those 10M shares?

    This question is significant because if 2) is true, then people from the “fringes” can get themselves in on the big pie.

    Anyone have an idea?

  3. 3 Mike

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    I like the company, and the leadership and feel theres lots of room to expand on the IB’s website platform, it definitely takes advantage of economies of scale, the profit potential is through the roof, the only thing I dislike is the structure of the deal, it leaves me wondering how much of that profit or loss will actually be realized by shareholders. Basically you have a group of investors who created a very awesome company and created a spin off and are breaking off a small portion of it to sell to the public hoping to raise approx. 500M which in turn will go back to the Parent Holding company for a small 5% interest in the Holding company. It seems like a great way to protect the wealth of the company legally by creating IBKR as a middle company to absorb any legal blows being they are in a high risk state operating globally. I have faith in the leaderships ability to be profitable, I just don’t know how generous they are with the stockholders being CEO Peterffy and Subsidies will still be the gate keepers to the profits.

  4. 4 Babak

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    I agree. If they keep their low cost structure their chances of continued growth are very good.

  5. 5 freepawn(germany)

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    As an german trader trader
    iam highlighy succesfull wit ib
    as other german brokers are no goes in realtion to ib…
    and Most Investor never heard about IB

    so great potential
    and goggle like story…

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