XTB floats shares in early May, IPO price 50% lower than earlier estimates

XTB floats shares in early May, IPO price 50% lower than earlier estimates

- in All News, Forex Brokers
warsaw stock exchange

The Polish online forex broker X-Trade Brokers (XTB) announced it is planning to debut on the Warsaw stock exchange (WSE) around May 6 this year. It will offer up to 16.43 million, or 14% of its existing shares. Of them 10-15% will be offered to retail investors.

According to an annex to the issue prospectus of XTB’s lead shareholder XXZW Investment Group, quoted by Polish media, the maximum initial public offering (IPO) price would be PLN 13 per share, which pegs the maximum total price of the shares at PLN 213 million ($56 million). It is about 50% less than the bookrunners’ earlier estimates of PLN 300 million (a little over $80.3 million), but would be the biggest IPO in Warsaw since last April.

“Volatility was back in 2015, which had an impact on XTB earnings,” XTB founder Jakub Zablocki said at a press conference in Warsaw, quoted by Bloomberg. “Big things may also happen this year, such as Brexit or Donald Trump’s win” in U.S. presidential elections, which “may impact financial markets and boost efficiency of our business and help increase our revenue. For a broker like XTB and its clients, these are the tailwinds.”

According to the prospectus, XTB will receive no proceeds from the sale of its shares by the shareholder. Bookbuilding is expected to conclude on April 26, when the final IPO price will be announced.

XXZW, which currently holds over 80% in XTB, agreed to a 540-day lock-up counting from XTB’s WSE debut. The second major shareholder, Systexan (19% stake) will be under 180-day lock-up, while XTB itself agreed to a 360-day lock-up.

The IPO will be led by the US multinational financial services company JP Morgan and UniCredit’s Pekao Investment Banking, assisted locally by the Poland-based financial services company Ipopema Securities.

XTB would be the third large forex broker to become public, after UK’s CMC and Japan’s Hirose.

XTB was founded in 2002 and is now established in more than 15 countries in Europe, South America and Asia. It is the leading forex broker in Central and Eastern Europe. The broker provides online trading in over 1500 instruments, including forex, indices, shares, commodities and ETFs. It offers three types of live trading accounts and does not require a minimum deposit. Trading can be done on two platforms – the MetaTrader 4 and the broker’s proprietary xStation. The broker’s various subsidiaries are regulated by UK’s Financial Conduct Authority (FCA) and Poland’s financial supervision commission (KNF).

In 2015 the broker posted a 54% rise in its net profit to PLN 119 million ($31.9 million) and a 38% increase in revenue to PLN 283 million ($75.8 million).

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like

Poland’s KNF warns of BitBay, Abucoins exchanges, pays for YouTube smear campaign against cryptos

The Polish Financial Supervision Authority (KNF) has issued