FXall successfully completes IPO, priced well below the range, rises 14.5%

FX Alliance (or FXall in short) successfully completed its anticipated IPO today. FXall trades on NYSE under the FX ticker. FXall had to slash its offered price to $12.00 from the originally expected range of $13.50-$15.50 to be able to attract enough investors.

FXall is an independent electronic foreign exchange platform, giving over 1,000 institutional clients a trading edge with choice of Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term, end-to-end workflow management, and straight through processing. Latest Forex Magnates Quarterly Report described the institutional Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market, including FXall in great detail.

FXall announced its IPO plans back in September 2011 and in then released some financial data. Previous forex IPOs of FXCM and Gain Capital were unsuccessful to say the least losing about 30% in value since the listing date. This may explain why FXall had to slash its price as much just to attract buyers. Another reason may be that FXall didn't receive any proceeds from the listing as all the shares were offered by a group of selling stockholders, which includes Citigroup Technology Inc, Goldman Sachs Group , HSBC USA and Royal Bank of Scotland. Therefore current investors weren't contributing to company's available cash which is what typically investors do instead of just buying out previous shareholders.

FXall reported a net income of $18.3 million, up 14 percent from a year ago, for the nine months ended Sept. 30, 2011. Revenue was up 21 percent at $88.7 million. In the same period, FX Alliance's average daily trading volume grew to $83.9 billion, representing about 2 percent of the global FX average daily trading volume.

Today's closing price of $13.74 gives FXall value of about $390 million.