On Monday evening CBOE Holdings Inc. set the share price of its initial public offering at $29. Stock in CBOE will begin public trading Tuesday June 15. The IPO is expected to raise $278 million based on CBOE's 9.6 million share portion of the overall 11.7 million share IPO. Approximately 2.1 million shares are being sold by existing shareholders who will receive the proceeds.
Based on membership seat sales on Monday, value is growing for the offering. According to the CBOE Website, three memberships changed hands today, each at a higher price. Three seats were sold: the first at $2.45 million, the second at $2.475 million and the most recent at $2.5 million.
All of them were purchased by Caldwell Investment Management, who has been acquiring CBOE memberships for several years and holds more than 50. The final seat sale would suggest a stock price of $30 per share.
According to one member, the member portion of the IPO was over oversubscribed by 300%.