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Virtu Financial expects to raise up to $100 million in IPO

A trader with Virtu Financial Capital Markets (r) views a monitor at the NYSE.
Scott Eelis | Bloomberg | Getty Images
A trader with Virtu Financial Capital Markets (r) views a monitor at the NYSE.

Trading firm Virtu Financial, which posted only one day of trading losses in five years, plans to raise up to $100 million in an initial public offering, the company said in a regulatory filing.

Virtu said the IPO price was an estimate solely for the purpose of calculating the registration fee with the Securities and Exchange Commission.

The company, a market maker in equities, fixed income, currencies and commodities markets, intends to list Class A shares on Nasdaq under the symbol "VIRT." Virtu will have three other share classes.

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The underwriters for the offering include Goldman Sachs, J.P. Morgan and Sandler O'Neill Partners.

Vincent Viola, Virtu's founder and executive chairman, will control more than a majority of the combined voting power of the company's common stock after the offering.

Private equity firm Silver Lake Partners, which acquired its stake in 2011, is the other major shareholder.

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Last year, the company paid out $433.4 million in cash distributions to members.

Virtu said as a result of its real-time risk management strategy and technology, the company had only one losing day of trading from the beginning of 2009 through the end of 2013, a total of 1,238 trading days.

Virtu reported a net income of $182.2 million on a revenue of $623.7 million last year, an increase from earnings of $87.6 million on $581.5 million in revenue in 2012.

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Virtu employs a "market neutral" strategy in which it is not dependent on the direction of any particular market. The firm says it aims to lock in returns through "precise and nearly instantaneous hedging."

Virtu said it expected global electronic trading to continue to grow, after experiencing a compound annual rate of 13.7 percent over the past decade, according to the World Federation of Exchanges.

—By Reuters.

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