Changes to the FXall IPO filing, are bank shareholders selling up?


FXall the multidealer FX platform that announced their intention for an FXall IPO last December, yesterday updated their IPO filing with the SEC to reflect changes in the use of the proceeds from the IPO.

The initial filing on page 28 here, stated with regard to the use of the proceeds that:

We intend to use the net proceeds from the sale of common stock by us in this offering for working capital and other general corporate purposes, including potential acquisitions

However, that same section in the revised filing on page 29 here , states simply:

We will not receive any proceeds from the sale of shares of our common stock by the selling stockholders, including any shares sold by the selling stockholders in connection with the exercise of the underwriters’ option to purchase additional shares.

Could this mean that FXall bank shareholders, and initial equity backers are thinking of cashing in their chips?

Well interestingly, I asked just that question on 5th December following the release of FXall Q3 figures here, where I stated:

My view: Although, as previously mentioned,  we see single dealer platforms continuing as preferred channel through which buy-side firms access liquidity, whether provided by banks directly, or routed to SEFs where mandated. To date, 99% of FXall volume consists FX spot, fwds and swaps, all of which are exempt from SEF mandates.

Bank ownership: Under SEF rules, bank ownership is limited to under 25%, so will be interesting to see whether the current FXall bank shareholders each of which hold 5.1% (BNP, Citi, Credit Agricole, CS, Goldman, HSBC, MS, RBS – although the top three FX banks, Deutsche, UBS and BarCap are not shareholders in FXall) will cash in, or stay onboard to have a stronger influence on possible intermediation of their bank-client relationships, as mentioned here in could FXall become too big.

Surely FXall would have need of additional capital, for investment in newer technology,  to better serve clients in the face of greater regulatory oversight.

Of course, existing shareholders, could take the view, that that’s exactly why they are using the IPO as the ideal time to exit their investment, as I have previously asked, could FXall be getting too big, and now is the time to exit that play?

2 Responses

  1. […] previously mentioned, FXall plans to raise $75mln, with “all proceeds going to existing shareholders” – with some of the banks expected to exit on […]

  2. […] have background on items on the FXall IPO here, here and here Share this:EmailDiggStumbleUponTwitterFacebookPrintLinkedInLike this:LikeBe the first to […]

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