I wasn’t too enthusiastic about the long term prospects of investing in Flow Traders. A quiet and boring year at the stock market would probably crush their earnings. Then again, it’s a well run firm which could surprise everybody.
Anyway, the IPO was priced at the lower end of the range at €32 – while the IPO was oversubscribed multiple times. Stock jumped on the first day with some 12%, meaning they left a lot of money on the table. Stock continued to rise to €38. Given it’s only a small stake, it’s more important to be a “success” than running the risk of a failed IPO (with a few extra initial millions)
The chart missed the first days of trading, not the most useful Bloomberg screenshot ever. But you’ll get the idea. Stock is up 18,75% from the IPO price.
Who’s who at the Flow Traders opening bell
Here’s a picture of the opening bell ceremony ten days ago on July 10th. And especially interesting to see who’s who within Flow Traders. In front co-CEO Dennis Dijkstra and hipster co-CEO Sjoerd Rietberg. In the back row founders Jan van Kuijk and Roger Hodinius, and next to them lucky Ronald van der Geest. He still owns 3.69% of the firm.
The others from Flow Traders? In the middle row Gerard Ayodeji (Business Intelligence) and Diederik Dorst (Legal). On the back Fedja Terzic (Risk).The bald guy in front on the right side could be from Flow Traders as well. But as nobody seems to know the guy, he could just as well be a tourist who bluffed his way in. Free champagne.
In the middle with the red tie Maurice van Tilburg, CEO of Euronext Amsterdam. On the right side behind the statue, Hans Leufkens (Euronext business development). With the glasses is probably Marc Lefèvre (Euronext listings).
Flow Employee Participation Plan
A group of 54 employees had the possibility to buy shares for a discounteed price of €14,45. In order to participate it was required to work for Flow Traders for at least three full years. The lock up is another three years, after which gradual selling is allowed over a three years period. Golden chains. The tax man wishes to collect early, but takes the lock up into account.
It’s a big deal we’re talking about. The involved 54 employees bought on average a bit more than €400k each. They bought at a discounted price and the stock soared. This means on average their holding in Flow Traders is worth €1.08 million. On average in italics, because everybody knows this kind of firms aren’t socialist institutions. Not as bad as IMC, but the biggest buyers of these shares will be co-CEO’s Dijkstra and Rietberg. Last year they could divide a salary of €3.5m between them.
Optiver not looking for IPO
Rumor had it Optiver was preparing for an IPO as well. This probably stems from wishful thinking in the ranks of investment bankers. Checked the rumor and unfortunately, there are no such plans. Would have been interesting.