IBKR

[ScottishTrader]

Interactive Brokers just released details of the settlement price of their IPO - they have allotted 40M shares at $30.01.  This IPO has been pretty heavily hyped, but I'm a bit concerned here - originally they were going to issue 20M shares at $23-27M, but I suppose, given the interest they decided to up it not once but twice.  I hope that this means the shares represent a correspondingly larger proportion of the company, and that share holders are not simply being diluted further by this increased allocation.

I'll have a look at it tomorrow, but I'm in for 200 shares... will be interesting to see how this plays out tomorrow and next week.

[nullzero]

I would love to get in IBKR its the future of trading... I am just hoping that it wont be over paying at the levels it will be trading tomorrow.

[ScottishTrader]

Yep, I have to say that the valuation appears to be a little lofty.  Essentially, they should have a total diluted share count of around 400M shares (10% being publicly traded). That means a market cap of $12B, given the IPO price.  Consider that 2006 revenues were $1.6B, it gives us a trailing P/S of 7.5, well above its competitors which generally trade with a P/S of around 5, and with $734M in revs, a trailing P/E of 16.3 (which is more inline with their competitors).  I think that where IB has advantages is in its rapid growth (especially in options), high net profit margins, and the fact that it makes most of its money from market making activities, so provided market activity remains strong (or continues to grow) IB should continue to do well.

The dutch auction IPO makes me thing that this will open around the offering price, but considering the level of interest in this IPO, things could get real interesting.