The Chicago Board Options Exchange Holdings Inc to go public
The Chicago Board Options Exchange Holdings Inc. will begin its public trading on the 15th of June 2010 in the Nasdaq Stock Market. The company will open 11.7 million shares to the public under the brand “CBOE” at a face value of $29 per share.
CBOE itself will sell only 9.6 million shares with its many share holders selling 2.1 million share in the Nasdaq Stock Exchange. The company is also selling 1,755,000 shares in unrestricted stock.
The Chicago Board Options Exchange is the last of the exchanges in the United States to go public. CBOE is the country’s biggest options exchange. The company went public even with the low stock prices in the economy now as experts suggested otherwise.
The move brought the company $399 million and sling shot its value to over $3 billion. Shares were sold at 28 times the earnings with CME Group Inc., which owns the CBOE selling at 23 times its earning value. Intercontinental Exchange Inc., which is the second largest exchange sold at 26 times its earning with NYSE Euronext selling at 12 times its earnings.
Another reason for the IPO would be that money the members receive. The members will make a total $2.42 million.
Many investors including Caldwell Financial Ltd’s Thomas Caldwell and Santa Monica Partners LP’s Lawrence Goldstein bought seats expecting to make good profits out of the move. Caldwell sold 600,000 shares in the IPO but still holds his majority and Goldstein pain over $2 million for his slot.