Bats IPO Raises $253 Million After Pricing at High End

  • Sold shares for $19 each, at high end of its $17-$19 estimate
  • Now Bats must get the shares trading on its stock exchange

Bats Global Markets Inc. priced its initial public offering at the top end of its marketed range, valuing the company at $1.8 billion.

The deal raised $253 million after 13.3 million shares were sold for $19 each, compared with its estimated price range of $17 to $19, according to a statement Thursday. The share sale, which doesn’t include the underwriters’ option to purchase an additional 1.995 million shares, is the biggest U.S. listing so far this year, according to data compiled by Bloomberg.

Proceeds from the sale won’t go to the company, but will instead go to investors including Bank of America Corp., KCG Holdings Inc. and Goldman Sachs Group Inc.

Bats increased the deal’s size after demand for shares exceeded the 11.2 million originally offered by 20 times, a person familiar with the matter said. 

Only 10 companies -- all biotech firms -- have gone public in 2016, marking the slowest start to a year since the last recession. Companies, bankers and investors are looking to the Bats deal to enliven the IPO market, which has been hampered by stock market volatility.

Bats faces the hurdle of listing its shares on its own exchange Friday. In 2012, it tried to go public on its own platform, only to cancel the offering when a glitch wouldn’t let the stock trade.

Morgan Stanley and Citigroup Inc. are leading the offering.

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