FX all prices its IPO at a much lower valuation

FX all prices its IPO at a much lower explained by professional Forex trading experts the “FX all prices its IPO at a much lower” FX trading team.

FX all prices its IPO at a much lower

Forex ECN firm FXall (or formally, FX Alliance Inc.) successfully priced its IPO on Wednesday evening, although – as we predicted – at a much lower price and valuation than initially planned.

FXall shareholders sold 5.2 million shares at $12 per share, below the company’s indicated $13.50-$15.50 “filing range” at which they attempted to sell the shares. Nevertheless, the pricing is a major success for the company and (mainly) its shareholders, as the first successful IPO in the Forex sector in more than a year, since FXCM and Gain Capital (Forex.com) debuted in December 2010.

It was an especially good day for FXall’s shareholders. In total they will rake in more than $125 million (less several million dollars in fees to underwriters and lawyers) from the transaction – $62 million from shares sold in the IPO, and $63 million more in a cash dividend paid by the company.

By lowering the IPO value, and the implied market valuation of FXall to $340 million (from $411 million “asking price” in the preliminary IPO prospectus), FXall is now priced much more in line with retail Forex firm FXCM. As per the table below, both are now valued at about 13x earnings (LTM) and 5x EBITDA.

FX all prices its IPO at a much lower Conclusion

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