CBOE’s IPO is a hit

CBOE’s IPO is a hit

Goldman Sachs was global coordinator of the sale, which valued the largest and oldest US options exchange at $2.975bn, or about 22 times expected 2010 profits, according to analysts.

Although the US stockmarket had fallen ahead of the IPO – and no company had floated for two weeks – the Chicago Board Options Exchange is a unique asset and was buoyed by two successive months of record trading volumes in April and May, at the end of an eight month run of year-on-year volume growth.

The 11.7m common shares fetched $339.3m and began trading on June 15 under the symbol CBOE. Since then the share price has oscillated between about $31.50 and $33.50.

The exchange has 102.6m shares after the IPO. Of those, 74.4m were created when each of 930 seats on the exchange was converted into 80,000 shares.

CBOE Holdings itself sold about 9.6m shares in the flotation, raising $278.4m for its own purposes, while other existing shareholders – former members of the exchange – sold about 2.1m shares.

The company granted the underwriters a 30 day option to purchase up to an additional 1.755m shares.