Forex broker IPOs of 2016: Hirose & CMC Markets doing great, XTB’s shares decline

Forex broker IPOs of 2016: Hirose & CMC Markets doing great, XTB’s shares decline

IPO

In order to figure out the most successful forex broker IPO of the year, SMN Weekly keeps tabs on stock price performance of CMC Markets, XTB, Hirose and Bats Global Markets, owner of institutional forex trading platform HotSpot FX, who have gone public in 2016. It turns out that the Japanese forex and binary options broker Hirose Tusyo Inc. (TYO:7185) has taken the lead so far, as its stock price has increased by 26.3% since its listing on the Tokyo Stock Exchange.

Previous week we brought your attention to the stock prices of Hirose, which have been on the rise since the beginning of August and reached an all-time high a day after the monthly report of the Financial Futures Association of Japan (FFAJ). Today, however, after opening with JPY 1270.00 stock price, Hirose hit a new all-time high, reaching JPY 1324.00.

Here is how each of the four companies that floated this year ended up previous week, compared to their first post-IPO day:

Company name IPO Date 1-Day 19 Aug Change%
XTB May 6 PLN 12.05 PLN 11.20 -7
BATS Global Markets April 15 USD 23.00 USD 24.36 5.9
CMC Markets Feb 05 GBX 238.27 GBX 276.70 16.1
Hirose Mar 18 JPY 845.00 JPY 1067.00 26.3

Although after the Brexit chaos it lags behind its close rivalry Plus500 (LON:PLUS) in terms of market cap, CMC Markets (LON: CMCX) is doing more than well: its shares have increased their prices by more than 16% over the 7 months after listing on the London Stock Exchange. Earlier in August the online spread betting and CFDs trading brokerage announced that it offers access to IPOs on ASX via OnMarket’s BookBuild facility.

X Trade Brokers Dom Maklerski SA (WSE:XTB), a.k.a. XTB, which was the best stock price performer in the first and second post-IPO months after floating, and also the only one among the four companies that came out of the Brexit turmoil with a positive price change in its stocks, saw its stock price dropping by 7%. In fact, XTB shares hit all-time low previous week, after disappointing H1 2016 results.

Hirose Tusyo Inc (TYO:7185) is a Japanese forex and binary options broker, doing business as Hirose FX. The company was set up in 2004 in Osaka and nowadays it operates units also in Hong Kong and Malaysia, and also has a UK-regulated subsidiary, Hirose Financial UK.

Hirose listed on the Tokyo Stock Exchange on March 18 this year, and in its third post-IPO month Hirose turned out to be the worst performer among the other three FX brokers that floated in 2016, as its stock price fell by 23.5% compared to the one on which it closed.

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