Gain Capital's IPO Raises $81 Million In Gross Proceeds

Gain Capital Holdings Inc. raised about $81 million from its initial public offering (IPO) today at a price that was lower than expected, according to the Associated Press.

The Bedminster, N.J. company which offer an online foreign exchange trading platform to retail investors as well as to an institutional client base is offering 9 million shares of common stock to the public at $9.00 per share. The stock started trading today under the symbol BCAP. Gain Capital offered 407, 692 shares of common stock and its selling stockholders are offering 8.5 million shares of common stock. The underwriters also have the option to purchase 1.35 million additional shares of stock.

The company had said it expected to sell about 11 million shares at a price between $13 and $15. It plans to use the net proceeds to pay the expenses related to the IPO.

Founded in 1999 by a group of trading and technology professionals,Gain Capital provides execution, clearing, custody and technology products and services to an institutional client base including asset managers and broker/dealers. Gain Capital also operates Forex.com, one of the largest and well-known brands in the retail forex industry.

The company has customers in 140 countries, and slightly more than half are outside the United States, according to the AP. Its total annual customer trading volume grew from $231.9 billion in 2005 to $1.2 trillion in 2009, according to the AP article.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio