Bats Global Raised $252.7 Million In Its Initial Public Offering, WSJ Says

The Wall Street Journal reported late Thursday afternoon that Bats Global Markets's initial public offering raised $252.7 million from the sale of 13.3 million shares at $19.

The company initially planned on selling 11.2 million shares between $17 and $19 per share but was upsized due to strong investor demand. Based on the final data, Bats Global is valued at $1.82 billion.

Bats Global's IPO is notable in the sense that the company canceled an initial public offering four years ago due to a software bug on its own exchange.

Bats Global's stock will begin trading for the first time on Friday on its own Bats BZX Exchange under the ticker "BATS" (BATS Global Markets, Inc. Class A Common Stock (BATS: BATS)).

Related Link: BATS IPO Priced At $19/Share -DJ

Experts appear to be mixed on the attractiveness of investing in the company.

"One drawback [when investing in exchanges] is that revenues are very dependent on volumes, which tend to be a function of the market environment," Chris Lee, manager of the Fidelity Select Financial Services Portfolio was quoted as saying by the Wall Street Journal. "Quarter to quarter [exchanges] can exhibit seasonality or volatility."

On the other hand, Lei Wang, a portfolio manager at Thornburg International Value Fund appears to be bullish on the company's prospects.

"You cannot deny the ETF has become more and more popular among the investor community," Lei "Rocky" Wang also told the Wall Street Journal. "Bats has a competitive advantage in ETFs, and the investment community will continue to look for new growth in the ETF product. That's their strength."

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