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

IPO

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 name IPO Date 1-Day  60-Day  Change %
XTB May 6 PLN 12.05 PLN 14.50 20.3
BATS Global Markets Apr 15 USD 23.00 USD 27.57 19.9
CMC Markets Feb 05 GBX 238.27 GBX 246.00 3.2
Hirose Mar 18 JPY 845.00 JPY 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 name 23 June
(market close)
24 June
(market close)
Change % June 30
(market close)
Change %
XTB PLN 14.20 PLN 14.39 1.3 PLN 15.10 6.3
BATS Global Markets USD 26.72 USD 25.79 -3.5 USD 25.69 -3.8
CMC Markets GBX 274.90 GBX 268.70 -2.2 GBX 270.60 -1.6
Hirose JPY 650.00 JPY 600.00 -7.7 JPY 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.

Leave a Reply

Your email address will not be published.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

You may also like

Possible GLBR delisting from NASDAQ will not affect FXCM’s clients

In response to questions from its customers, FXCM