CBOE Holdings Inc., the last major U.S. securities exchange owned by its members, surged as much as 16% after completing its transformation into a public company with an initial public offering.
The operator of the biggest options exchange climbed as much as $4.75 to $33.75 in Nasdaq Stock Market trading as of 1:52 p.m. EDT. CBOE raised $339 million selling 11.7 million shares at $29 each Monday after offering them at $27 to $29, a Securities and Exchange Commission filing showed.
“Pricing at the upper end was justified,” said David Goerz, who oversees $17 billion at Highmark Capital Management Inc. in San Francisco. “The CBOE is going to have an advantage in growing profitability. There's hope for significant upside for derivatives-related exchanges in particular.”
CBOE was the first American company to sell shares in an IPO since GenMark Diagnostics Inc. on May 28. IPOs had dried up as concern the European debt turmoil is spreading beyond Greece and slower-than-estimated U.S. jobs growth in May helped push the S&P 500 down 10% from its 2010 high on April 23.