How do you feel about IB's new IPO?
- Thread starter yucca_mtn
- Start date
What bothers me somewhat is this exceprt from the prospectus:
USE OF PROCEEDS
The net proceeds from the sale of the 20,000,000 shares of common stock offered by us will be
approximately $490.6 million, after deducting the placement agency fee.
The primary purposes of this offering are to:
⢠diversify the ownership of IBG LLCâs business;
⢠raise IBG LLCâs profile for competitive reasons;
⢠create a public market for our common stock; and
⢠facilitate future access to public markets.
We intend to use the net proceeds of this offering to purchase membership interests in IBG LLC
from IBG Holdings LLC representing approximately 5% of the outstanding membership interests in IBG
LLC. IBG Holdings LLC will, in turn, use such sale proceeds to redeem, on a pro rata basis, IBG Holdings
LLC membership interests held by its members, who include 66 of our employees (including the directors
and executive officers set forth in the second table below). The following table illustrates the expected
application of the gross proceeds from this offering as described above. An additional $4.0 million in
estimated offering expenses will be borne by IBG LLC.
(in millions)
Gross proceeds from offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500.0
Placement agency fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9.4
Net proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $490.6
Acquisition of membership interests in IBG LLC from IBG Holdings LLC . . . . . . . . . . . $490.6
The following is a listing of our directors and executive officers expected to receive net proceeds
from this offering, together with the percentage and dollar amount net proceeds to be received from this
offering:
% of Net
Proceeds
to be
Name Title Received Amount
(in millions)
Thomas Peterffy . . . . Chairman of the Board of Directors, Chief Executive
Officer and President 84.5784% $415.0
Earl H. Nemser . . . . . Vice Chairman and Director 1.1895% $ 5.8
Paul J. Brody . . . . . . Chief Financial Officer, Treasurer, Secretary and
Director 1.2509% $ 6.1
Thomas A.J. Frank . . Executive Vice President and Chief Information
Officer 3.1498% $ 15.5
Milan Galik . . . . . . . Senior Vice President, Software Development and
Director 1.3687% $ 6.7
Directors and executive officers as a group . . . . . . . . . . . . . . . . . . . . . . . 91.5373% $449.1
No additional IBG LLC or IBG Holdings LLC membership interests will be granted to employees
or executive officers in connection with this offering.
41
The funds go to the pockets of the owner, with dribbles to the officers. Look at the stated Purpose - nothing to do with benefiting the company in any significant way, just more exposure. None of the money is slated for investment capital to benefit IB. 95% ownership firmly in the hands of Mr. Peterffy.
$200 million for 5%?
USE OF PROCEEDS
The net proceeds from the sale of the 20,000,000 shares of common stock offered by us will be
approximately $490.6 million, after deducting the placement agency fee.
The primary purposes of this offering are to:
⢠diversify the ownership of IBG LLCâs business;
⢠raise IBG LLCâs profile for competitive reasons;
⢠create a public market for our common stock; and
⢠facilitate future access to public markets.
We intend to use the net proceeds of this offering to purchase membership interests in IBG LLC
from IBG Holdings LLC representing approximately 5% of the outstanding membership interests in IBG
LLC. IBG Holdings LLC will, in turn, use such sale proceeds to redeem, on a pro rata basis, IBG Holdings
LLC membership interests held by its members, who include 66 of our employees (including the directors
and executive officers set forth in the second table below). The following table illustrates the expected
application of the gross proceeds from this offering as described above. An additional $4.0 million in
estimated offering expenses will be borne by IBG LLC.
(in millions)
Gross proceeds from offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500.0
Placement agency fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9.4
Net proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $490.6
Acquisition of membership interests in IBG LLC from IBG Holdings LLC . . . . . . . . . . . $490.6
The following is a listing of our directors and executive officers expected to receive net proceeds
from this offering, together with the percentage and dollar amount net proceeds to be received from this
offering:
% of Net
Proceeds
to be
Name Title Received Amount
(in millions)
Thomas Peterffy . . . . Chairman of the Board of Directors, Chief Executive
Officer and President 84.5784% $415.0
Earl H. Nemser . . . . . Vice Chairman and Director 1.1895% $ 5.8
Paul J. Brody . . . . . . Chief Financial Officer, Treasurer, Secretary and
Director 1.2509% $ 6.1
Thomas A.J. Frank . . Executive Vice President and Chief Information
Officer 3.1498% $ 15.5
Milan Galik . . . . . . . Senior Vice President, Software Development and
Director 1.3687% $ 6.7
Directors and executive officers as a group . . . . . . . . . . . . . . . . . . . . . . . 91.5373% $449.1
No additional IBG LLC or IBG Holdings LLC membership interests will be granted to employees
or executive officers in connection with this offering.
41
The funds go to the pockets of the owner, with dribbles to the officers. Look at the stated Purpose - nothing to do with benefiting the company in any significant way, just more exposure. None of the money is slated for investment capital to benefit IB. 95% ownership firmly in the hands of Mr. Peterffy.
$200 million for 5%?
I cannot say IB any good word if they want to go IPO.
It only prove IB boss getting gredy but nothing else.
If IB going IPO, the first thing I do is withdraw a chunk of my money out of IB.
IB is good for retailer investors but it doesnt mean it is good for IPO.
do you remember Refco going bankrupt after IPO in one month.
That is a American joke in real world.
Basicly I dont trust those guys.
It only prove IB boss getting gredy but nothing else.
If IB going IPO, the first thing I do is withdraw a chunk of my money out of IB.
IB is good for retailer investors but it doesnt mean it is good for IPO.
do you remember Refco going bankrupt after IPO in one month.
That is a American joke in real world.
Basicly I dont trust those guys.
one thing for sure in IB is employee doesnt deserve going IPO.
I dont say any words on IB boss that is just one generation immigrant.
From my experience, I can tell you at some point that people pickup my phone is a grandma who say strange English and nothing know about it. I dont know if she is undocumented
immigrant or not.
What do you think about it? If I am not idiot, you must be one.
I dont say any words on IB boss that is just one generation immigrant.
From my experience, I can tell you at some point that people pickup my phone is a grandma who say strange English and nothing know about it. I dont know if she is undocumented
immigrant or not.
What do you think about it? If I am not idiot, you must be one.
I would have preferred they stay private. Primarily because they'll now be entrenched in the quarterly gimmick of "beat the number" for Wall St's pleasure. If the markets contract and trading volumes decline, the firm will be hard-pressed to look for ulterior sources of income to keep the bottom line growing.
That's when you may start noticing things like interest earned rates going down, dollar brackets for earning said rates increasing further (from the already lofty $10k/$100k thresholds), interest on short sales decreasing, etc. There are a lot of stealthy ways they can drive margins without directly altering commissions. The aforementioned interest rate examples are what gives IB such an edge over their competitors, I'd hate to see the IB executives start looking to chop these down for the betterment of their stock options....
That's when you may start noticing things like interest earned rates going down, dollar brackets for earning said rates increasing further (from the already lofty $10k/$100k thresholds), interest on short sales decreasing, etc. There are a lot of stealthy ways they can drive margins without directly altering commissions. The aforementioned interest rate examples are what gives IB such an edge over their competitors, I'd hate to see the IB executives start looking to chop these down for the betterment of their stock options....
Bad customer service, platform keeps crashing. They say they have the lowest cost structure on the planet, yet, if you trade a lot of shares then the commissions add up quick. Its a lot more expensive then TDAmeritrade in the end.
TDAmeritrade gives you a written promise that they will replace your money if its stolen from the account. IB gives you nothing.
I received an email that I could bid for shares in the IPO. I tried to call them so I can inquire if any short shares were available. However, Customer Service took too long to answer.
TDAmeritrade gives you a written promise that they will replace your money if its stolen from the account. IB gives you nothing.
I received an email that I could bid for shares in the IPO. I tried to call them so I can inquire if any short shares were available. However, Customer Service took too long to answer.