Exchange Operator Bats Global's IPO Said to Be Oversubscribed

Exchange operator Bats Global Markets Inc.’s initial public offering is oversubscribed, three days before the sale is due to price, according to people familiar with the matter.

The deal has demand from investors for at least five times the number of shares being issued, said one of the people, all of whom asked not to be identified because the matter is private. The shares are set to price after the market closes on Thursday, and begin trading the next day.

Bats’s IPO is being closely watched as a pacesetter for other potential listings. Stock market volatility and valuation-sensitive investors have helped delay or scuttle a number of deals, with only 10 small biotechnology and pharmaceuticals companies going public since the start of the year. Bats would be the biggest IPO so far, with an offering size of as much as $212.8 million.

Bats has tried to go public before, back in 2012. That time, a software error on its own stock exchange prompted the listing to be canceled. The company is again planning to sell shares on its own exchange.

Bats is marketing 11.2 million shares at a range of $17 to $19 apiece. At the high end, that’d give the company a valuation of as much as $1.8 billion -- which is more than double the $760 million it fetched in 2012.

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