Business

Bats Global Markets reportedly is planning a second IPO

Bats operates the second largest U.S. stock exchange, behind the New York Stock Exchange. It handles about one out of five trades in U.S. equities.
Bats operates the second largest U.S. stock exchange, behind the New York Stock Exchange. It handles about one out of five trades in U.S. equities. The Kansas City Star

A published report says Lenexa-based Bats Global Markets Inc. will try again to become a publicly traded company on its own stock exchange.

Bats, founded in 2005, operates the second largest U.S. stock exchange, behind the New York Stock Exchange and larger than Nasdaq. It handles about one out of five trades in U.S. equities.

The report from The Wall Street Journal said that the company would issue its own stock next spring in an initial public offering and that those shares would trade on the Bats Exchange. It did not cite its sources.

Bats spokesman Randy Williams declined to comment.

Bats tried to handle its own IPO and stock listing in a failed effort to go public in 2012. That effort ended with a technical glitch that disrupted trading in the newly public shares. Bats Global withdrew its stock offering. The deal would have raised about $100 million for Bats owners at the time.

Since then, the company has become the listing exchange for a number of exchange-traded funds. It also operates markets in Europe and in options and foreign currencies.

Chris Concannon took over as chief executive last spring after joining the company as president a year ago. He succeeded Joe Ratterman, who remained as chairman.

An IPO, like the one planned three years ago, would allow Bats’ owners to cash in on some or all of their investment.

The owners then included individuals such as founder Dave Cummings of Tradebot Systems in Kansas City and financial firms such as Citigroup, Getco and Credit Suisse.

Only some owners planned to offer their shares to the public. Owners who keep shares would have a public market to sell them at some future date.

Bats was to receive none of the proceeds in the 2012 IPO, but it could use an IPO to raise money by selling new shares not already owned. Companies typically turn to Wall Street for capital to expand operations, make acquisitions, repay debts or fund other corporate plans.

Mark Davis: 816-234-4372, @mdkcstar

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