Gain Capital Holdings, which provides an online foreign exchange trading platform for retail customers, raised $81 million by selling 9,000,000 shares at $9 apiece, more than 35% below its expected range of $13 to $15. It also cut the number of shares sold by 18%, having originally planned to offer 11 million shares. Existing shareholders accounted for the majority of shares sold. Bedminster, NJ based Gain Capital, which generated nearly $188 million in sales for the 12 months ending September 30, 2010, completed its IPO less than two weeks after larger competitor FXCM (FXCM) raised over $200 million in an IPO undewritten by Credit Suisse, J.P. Morgan and Citi. FXCM priced at the midpoint if its range at $14 per share, but has seen its shares slip more than -6% since it began trading on December 2.
Gain Capital will open for trading on Wednesday on the NYSE under the symbol GCAP. Morgan Stanley and Deutsche Bank Securities acted as lead managers on the deal.
