By Whitney Kisling March 11 (Bloomberg) — The Chicago Board Options Exchange, the last major member-owned U.S. bourse, filed to sell up to $300 million in stock in an initial public offering. CBOE Holdings Inc. said in a filing with the Securities and Exchange Commission that it would issue 55.8 million Class A shares to members and 12.25 million Class B shares to former members of the Chicago Board of Trade who helped create the exchange in 1973. The Chicago-based company will pay a special dividend of $1.67 for each share of Class A and Class B common stock outstanding, the filing showed. CBOE directors approved a plan in December to change the structure and swap seats for shares. The vote followed a November agreement by the CBOE to pay $4.17 million to settle appeals in a three-year-old lawsuit related to its ownership. “This is a culmination of many months of work,” William Brodsky , chief executive officer of the CBOE, said at a conference in Boca Raton, Florida, sponsored by the Futures Industry Association, a trade group based in Washington. The offering would come after eight U.S. companies delayed or postponed IPOs this year and the 13 that completed deals cut their offerings by 26 percent on average, data compiled by Bloomberg show. The Chicago Board of Trade was acquired by the Chicago Mercantile Exchange in 2007, creating CME Group Inc., the world’s largest futures exchange. Board of Trade members’ ownership rights were written into the CBOE’s incorporation documents after CBOT members created it in 1973. To contact the reporter on this story: Whitney Kisling in New York at wkisling@bloomberg.net .
Original post:
CBOE Files to Raise $300 Million in IPO as Exchange Swaps Seats for Shares
