CBOE Holdings Inc., the last major U.S. securities exchange owned by its members, surged 12% after completing its transformation into a public company with an initial public offering.
The operator of the biggest options exchange climbed $3.49 to $32.49 in Nasdaq Stock Market trading on June 15. CBOE raised $339 million selling 11.7 million shares at $29 each after offering them at $27 to $29, a Securities and Exchange Commission filing showed.
The sale came after Europe's debt crisis spurred more than 30 companies worldwide to postpone or withdraw IPOs since April. Derivatives trading increased almost fivefold in the past decade and the CBOE is the venue for options based on the Standard & Poor's 500 Index and the VIX gauge of U.S. equity volatility.
“It's a strong business model,” said Nick Einhorn, a Greenwich, Conn.-based analyst at Renaissance Capital LLC, which has followed IPOs since 1991. “Even though the IPO market hasn't been strong and a lot of deals have faced pricing pressure, it shows for a high quality company, investors can certainly make an exception.”