FXall files for an IPO

FXall files for an IPO explained by professional Forex trading experts the “FXall files for an IPO” FX trading team.

FXall files for an IPO

This is obviously quite an interesting time to be filing for a public offering, when most IPO activity has been halted due to a very volatile (and mostly negative) equity capital market, especially involving financial-related stocks. Also, FXall has not exactly been “hitting the cover off the ball” – although its first half 2011 revenues of $57.0 million were 19% above last year, net income decreased slightly to $5.8 million. However, FXall seems to be getting in line to go public either later this year or early next, when conditions allow.

Although the company did not list a specific transaction size or valuation, based on a review of the prospectus we estimate that:

Offering Size – is planned to be in the range of $75-100 million, based on the company’s filing fee.
Company Valuation – is targeted to be in the $400 million range, pre-IPO, based on the company currently having 28.3 million shares outstanding, and a typical IPO price in the low to mid teens. (Note that both FXCM and Gain Capital filed with $13-$15 price ranges for their IPOs, with FXCM’s eventually pricing at $13, and Gain Capital at $9 per share. Both those companies’ share prices trade below the original IPO price). As well, an offering size of $100 million would fit a planned valuation of $400 million – IPO’ing shares representing 25% of the company for a company this size is about industry standard.

FXall files for an IPO Conclusion

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