The Stock That Killed its Own IPO

If you blinked, you missed BATS Global Markets’ short-lived IPO last Friday.

That’s because the Kansas-based computerized stock exchange pulled its initial public offering just seconds after it debuted on the New York Stock Exchange. According to the Wall Street Journal, a computer glitch disrupted trading of the stock last Friday morning, forcing BATS to immediately pull its IPO off the shelves.

BATS had priced the day before, selling its IPO at $16 a pop to mutual-fund and hedge-fund managers. Those investors wanted their money back once the stock’s computer glitches surfaced, demanding that BATS take the stock off the market.

Even before it pulled the plug, BATS’ stock had already fallen $0.75 from its IPO price. Some investors felt that at $16 a share, BATS’ IPO price was inflated – trading at roughly 10 times analysts’ 2013 earnings estimates.

Undeterred, the company still plans to go public sometime in the second quarter, according to founder Dave Cummings.

BATS would have been the sixth new stock to debut last week in what is suddenly a red-hot IPO market. Eighteen companies went public in February, 11 more IPOs have debuted so far this month, and another 10 are scheduled to price later this week.

As long as there are no more technical glitches, that is.

Published by Wyatt Investment Research at