Forex broker IPOs of 2016: Brexit effect on CMC Markets, XTB, BATS and Hirose

Forex broker IPOs of 2016: Brexit effect on CMC Markets, XTB, BATS and Hirose

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SMN Weekly team keeps a close eye on FX brokers, who have gone public in 2016, in order to figure out the most successful IPO of the year. Two month after its listing, X Trade Brokers Dom Maklerski SA (WSE:XTB), a.k.a. XTB, showed best results among the four companies, staging a rise of more than 20% in its stock price and coming out of Brexit turmoil with a positive price change.

In fact, this outcome is hardly surprising, as a month ago, when we initiated this IPO comparative analysis, we found out that XTB`s stock prices rose by 7.9% in the first 10 days after listing, and by 16.2% during the first month on the Warsaw Stock exchange. What is more, just 10 days after XTB has become public, the broker rated 7th among FX brokers in terms of Market Capitalization, outperforming Gain Capital, FXCM, Money Partners Group, KVB Kunlun and Hirose.

The first two post-IPO months

Here are the stock-price performance statistics of the four brokers for their first two post-IPO months:

Company nameIPO Date1-Day 60-Day Change %
XTBMay 6PLN 12.05PLN 14.5020.3
BATS Global Markets Apr 15USD 23.00USD 27.5719.9
CMC MarketsFeb 05GBX 238.27GBX 246.003.2
HiroseMar 18JPY 845.00JPY 830.00-1.8

As we can see from the table above, BATS Global Markets (BATS:BATS), is breathing right down the neck of XTB, registering an increase of almost 20% in its stock price in the first two months after floating. Earlier in June the company announced that its global forex exchange Bats Hotspot will expand its product offering with forwards contracts later this year.

Post-Brexit effects

As probably the most significant event that shook the financial markets lately was the UK referendum, we decided to track down the Brexit effect on stock prices of these four brokers.  It turns out the only one that came out of the immediate Brexit turmoil with a positive stock price (1.3%) change, was XTB. Here are the figures:

Company name23 June
(market close)
24 June
(market close)
Change %June 30
(market close)
Change %
XTBPLN 14.20PLN 14.391.3PLN 15.106.3
BATS Global Markets USD 26.72USD 25.79-3.5USD 25.69-3.8
CMC MarketsGBX 274.90GBX 268.70-2.2GBX 270.60-1.6
HiroseJPY 650.00JPY 600.00-7.7JPY 643.00-1.1

What is more, a week after the Brexit, XTB`s stock traded for PLN 15.10, 6.3% higher. Another brokerage whose stock prices recovered in less than a week after the UK vote, was LSE-listed Plus500 (LON:PLUS), the main rivalry of CMC Markets (LON:CMCX), which is making a slower recovery from the Brexit aftermath.

Founded back in 2002, the Polish online forex broker X-Trade Brokers (XTB) 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. It listed on the Warsaw Stock Exchange on the 6th of May as X Trade Brokers Dom Maklerski SA (WSE:XTB), making the biggest WSE IPO in 2016 and, as It turns outр scoring the best post-IPO stock price performance so far, compared to the other three FX brokers that went public this year.

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