FXall IPO hits the road – all the details
Well, it looks like FXall is (finally) ready to hit the road this week and begin meeting with institutional investors before planning to price its IPO next week, and begin trading on the New York Stock Exchange with ticker symbol “FX”. (Companies going public traditionally do a one to two-week roadshow prior to pricing the offering, giving mainly institutional investors across the U.S. and Europe the chance to meet with management and ask questions).
The basic details:
SIZE: FXall plans to raise $75 million, with all the money going to selling shareholders. (Or specifically, 5.2 million shares at between $13.50 and $15.50 per share). The selling shareholders consist almost exclusively of several banks which as a group hold most of FXall’s shares. However FXall’s two largest shareholders, venture capital firm Technology Crossover Ventures (28%) and CEO Phil Weisberg (7%) are not selling any of their shares.
VALUATION: FXall will try to convince investors that its market value should be $411 million – right in line with our estimation when FXall first filed to go public back in September. And on a multiples basis, FXall expects the market to give it a significant premium to both FXCM and Gain Capital, as follows:
RESULTS: FXall gave us a peek into its Q4 numbers in the updated “red herring” prospectus (note that the numbers are preliminary):
- Trading volumes were down 7% in Q4 (as compared to Q3-2011), to approximately $82 billion daily.
- Revenues were down 8% in Q4 to $29.3 million.
- EBITDA was down 12% in Q4 to $14.2 million.