CBOE seat sales imply $3b market value ahead of IPO
Wednesday, 16 June 2010
CHICAGO, June 15 (Reuters): The Chicago Board Options Exchange's (CBOE) biggest investor boosted his stake in the No 1 US options market Monday in a bullish bet that puts CBOE's value on the eve of its initial public offering (IPO) at $3 billion, the, according to a spokesman for the investor.
Thomas Caldwell, chairman of Toronto-based Caldwell Investment Management, paid $2.475 million for one seat and $2.45 million for the other, his spokesman said.
The seat sales value CBOE shares at $29.69 and $29.38, respectively, above the expected IPO range of $27 to $29. The IPO is to be priced after markets close Monday, the exchange said.
With 102.6 million shares due to be outstanding after the IPO, the seat prices would indicate a market value for the exchange of just over $3 billion.
Thomas Caldwell, chairman of Toronto-based Caldwell Investment Management, paid $2.475 million for one seat and $2.45 million for the other, his spokesman said.
The seat sales value CBOE shares at $29.69 and $29.38, respectively, above the expected IPO range of $27 to $29. The IPO is to be priced after markets close Monday, the exchange said.
With 102.6 million shares due to be outstanding after the IPO, the seat prices would indicate a market value for the exchange of just over $3 billion.