FXCM IPO Successfully Completed – Worth $1 Billion

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FXCM was indeed completed late on Wednesday in New York – one FXCM share is was priced at $14, the midpoint between the $13-$15 dollar range. All in all, the US broker raised almost $211 million before expenses. The FXCM stock will begin trading on Wall Street from December 2nd under the obvious symbol FXCM, with a very nice valuation. More details:

This means that FXCM’s valuation is indeed $1 billion – the valuation that they aimed for. which  is 16 times FXCM’s earnings in 2010. We now have the forex stock.

Bloomberg reports about the sale of stocks and quotes a money manager that thinks it’s a fair price:

“They brought the deal at a fairly attractive price,” said Timothy Cunningham, a money manager at Santa Fe, New Mexico-based Thornburg Investment Management, which oversees about $70 billion. “It’s a moderately positive sign that they got this done at the middle of the range.”

Here’s the full press release from FXCM:

New York – December 1, 2010 — FXCM Inc. announced today that its initial public offering of 15,060,000 shares of its Class A common stock has been priced at $14.00 per share. The shares are expected to begin trading tomorrow, December 2, 2010, on the New York Stock Exchange under the ticker symbol “FXCM.” The underwriters have been granted a 30-day option to purchase up to 2,259,000 additional shares of Class A common stock at the public offering price less the underwriting discount from FXCM if the underwriters sell more than 15,060,000 shares in the offering.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are acting as joint book-running managers of the offering.  Barclays Capital Inc., Deutsche Bank Securities Inc., Sandler O’Neill & Partners, L.P. and UBS Securities LLC are acting as co-managers. The offering will be made only by means of a prospectus. Copies of the final prospectus, when available, may be obtained by contacting Credit Suisse Securities (USA) LLC, Attention: Credit Suisse Prospectus Department, One Madison Avenue, New York, NY 10010, or by calling: 800-221-1037, J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Attention: Prospectus Department, or by calling: 866-803-9204 and Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, or by calling: 800-831-9146, or by e-mailing: [email protected].  The final prospectus, when it is available, also may be obtained on the Securities and Exchange Commission’s Web site at http://www.sec.gov.

About FXCM Inc.

FXCM Inc. (NYSE: FXCM) is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers world-wide.
At the heart of FXCM’s client offering is No Dealing Desk forex trading. Clients benefit from FXCM’s large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs.  Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts.  FXCM’s U.K. subsidiary, Forex Capital Markets Limited, also offers CFD products with no re-quote trading and allows clients to trade oil, gold, silver and stock indices along with forex on one platform.  In addition, FXCM offers educational courses on forex trading and provides free news and market research through DailyFX.com.

Trading foreign exchange and CFDs on margin carries a high level of risk, and may not be suitable for all. Read full disclaimer.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.