The IPO of FXCM will probably be held on Thursday, December 2nd, and the general notion about it is good. Towards the IPO, we hear voices that see the FXCM IPO as a good thing.
The mid price of one FXCM share is $14 – between $13 and $15. Recent IPOs led by Credit Suisse were successful and that the shares of the companies remained above the issue price afterwards. It seems that this is the only initial public offering due this week, and probably the last IPO window until the end of the year.
A decline in stock markets is bad for an IPO, but on the other hand, falling stocks make forex trading more attractive. As the stock seems reasonably priced and as it has serious bankers behind it, there’s a good chance that it will succeed.
MarketWatch reports about it and quotes Sang Lee, a researcher at Aite Group:
“As firms become public and are willing to share more information about their company and what they’re seeing in the market, it can only help the overall market,” Sang said.
I certainly agree that the stock price of FXCM and it’s extended transparency as a public company will definitely contribute to the whole forex industry. It will make online trading forex much more legitimate and mainstream than it is today.
Francis Gaskins of IPODesktop.com, analyzes the numbers of FXCM and discusses valuation, sales, marketing, technology, competition and the use of proceeds, and the bottom line of this thorough analysis is that FXCM is reasonably priced.
Read more about the FXCM’s $1 billion valuation and the meaning of it for the forex industry.
Also Gain Capital, owner of forex.com, filed for an IPO, valued at a lower price. It is still unclear when it will happen. An IPO of Gain significantly depends on a FXCM’s success.
Update: IPO will probably be held on Thursday
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