Liquidnet IPO Review

A new IPO or initial public offering is set to hit the capital markets very soon. The IPO belongs to Liquidnet Holdings Incorporated, an electronic trading venue which has given the established stock exchanges a run for their money and managed to squeeze in their profit margins.

What is the size of Liquidnet IPO?
As per the filing with SEC, the Liquidnet IPO is expected to cash in and sell shares worth around 500 million USD.

How many shares will be sold through the Liquidnet IPO?
There is no indicative figure about the number of shares being sold by the Liquidnet IPO as of yet.

When will the Liquidnet IPO hit the primary markets?
The Liquidnet IPO filing is expected to open for subscription on dates sometimes in the fourth quarter. Though final dates are not yet decided.

What is the price or price band of the Liquidnet IPO shares?
The shares of Liquidnet IPO will be offered at a price which is not indicated as of yet.

What are the business valuations of Liquidnet IPO?
The New York-based company, founded in 1999, is the dominant electronic marketplace serving buy-side trading firms in the United States. It lets the firms anonymously trade large blocks of stock without traditional brokers and exchanges. It is among the 10 largest brokers in the country.
In 2007, the company averaged a trading volume of 63.2 million shares per day, up 32 percent from a year earlier, according to the filing.

How does Liquidnet IPO stand against its competitors?
Liquidnet's rivals have generally seen their stocks get battered this year. Shares of CME Group, NYSE Euronext and NASDAQ OMX Group have fallen more than 44 percent as investors express concern about future trading volume on the exchanges.
Liquidnet is banking on its private exchange model which if proves to have a better model, it's probably going to pique the interest of investors in spite of the weakness of the exchanges.
Liquidnet has recently moved aggressively to build up its market share and is in talks to link its liquidity pools to major exchanges such as the New York Stock Exchange, a unit of NYSE Euronext Inc, and Nasdaq OMX.
The company is also moving to build up its business overseas, having entered the Japanese market in June. In May it traded $2.3 billion in Asia.

What are the financial results and market out of Liquidnet IPO?
According to unaudited financial information included in the company's filing with the U.S. Securities and Exchange Commission, Liquidnet's first-quarter earnings rose 11 percent to $30 million, while revenue increased 38 percent to $107 million.

For all of 2007, net income was $115 million on revenue of $345 million. Underwriters of the IPO are Goldman Sachs & Co, Credit Suisse, JPMorgan, Lehman Brothers, Liquidnet and Sandler O'Neill + Partners LP.

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