IBKR is NOT using the proceeds to expand the business

[demoship]

All net proceeds of this offering will go to the current members of IBG LLC, including all of our
executive officers and employee directors, rather than be used for corporate business purposes.
We intend to use all net proceeds of this offering to purchase IBG LLC membership interests
from IBG Holdings LLC, which will, in turn, use such proceeds to redeem a portion of the IBG Holdings
LLC membership interests to be held by the current members of IBG LLC. Such redemptions will result in
all net proceeds of this offering going to the current members of IBG LLC on a pro rata basis. Of this
amount, more than 91.5% will go to our employee directors and executive officers. We do not anticipate
using any net proceeds for corporate business purposes. See ‘‘Use of Proceeds.’’

Page 31 of the prospectus..

Is IBKR still a good IPO?

Now I'm starting to rethink whether or not it's good, if they're selling part of the business simply because the current owners want to bail out of part of their stakes.

 

[S2007S]

i think there is too much hype behind this ipo...

 

[FullyArticulate]

Also worth noting is that the new shareholders will have absolutely no voting rights at all. Voting (and most of the IPO proceeds) stays with their CEO.

In short, IBKR is Thomas Peterffy going public, not IB.

 

[mde2004]

No one buy this IPO so the smart money can get it all. Each employee brings in over $1m dollars in net income and the company is growing faster than comparables by a large margin. They own stakes in many exchanges including ISE. Keep telling yourself this IPO is to high idiots.

http://www.marketwatch.com/news/sto...x?guid={A6011EAA-8313-4C01-A71A-1BC6669720C3}

 

[FullyArticulate]

Quote from mde2004:

No one buy this IPO so the smart money can get it all....Keep telling yourself this IPO is too high idiots.

Yeah, we're idiots alright. I'm sure glad the "smart money" overpaid by 20%+.

 

[TorontoTrader2]

V-v-Vonage....