Interactive Brokers IPO Looks Hyperactive

Interactive Brokers, under the propsed ticker "IBKR," has essentially doubled what the company will raise and what it will ultimately be worth.  The IPO was deemed a hot issue, but it has gotten hotter.  This may even reach close to $1 Billion in funds raised.

Originally it had filed to sell 20 million shares at $23.00 to $27.00, but the strong demand from the public has jacked up the offering 34.5 million shares with a new higher range of $27.00 to $31.00.  This one will price Thursday evening for a Friday trade.

One note to mind here is that this one is coming out via the W.R.Hambrecht OpenIPO(R) system.  HSBC is acting as a joint book-runner, and co-managers are listed as Fox-Pitt Kelton, Sandler O’Neill, and E*Trade.   This OpenIPO has been shunned by some on Wall Street at the bulge bracket firms, but the other side of the story is that the market buyers determine the actual market pricing rather than bulge bracket firms setting an arbitrary value.

Because of the online broker’s footprint, this is a winner as it trades stock, options, futures and currencies on more than 60 global markets.  That gives it the advantage hands down to other name online trading firms available to Joe Q. Public.

Jon C. Ogg
May 2, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.