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BATS Global Markets will pay a $100 million cash dividend to its stakeholders upon completing its initial public offering, according to a regulatory filing.
BATS' board of directors on Wednesday approved the planned payout, which will allow the trading firms and banks that have backed the seven-year-old company to cash in on their investment.
The cash dividend was detailed in a filing submitted to the Securities and Exchange Commission Thursday by BATS in advance of a public float anticipated in late March or early April, according to people familiar with the matter.
The electronic-exchange company filed to go public last May via a share sale that would raise $100 million for the market operator based in Lenexa, Kan., a suburb of Kansas City. BATS is the third-largest U.S. stock market operator behind NYSE Euronext (NYX) and Nasdaq OMX Group Inc. (NDAQ) and out of London runs the largest pan-European stock market following its acquisition last year of rival platform Chi-X Europe.
BATS was formed in June 2005 by Tradebot Systems, a high-frequency trading firm based in Kansas City. A raft of other firms signed on as investors afterward, including Getco LLC, Wedbush, Bank of America Merrill Lynch (BAC), Citigroup Inc. (C), Credit Suisse (CS), Deutsche Bank (DB), JP Morgan Chase & Co. (JPM), Lehman Brothers and Morgan Stanley (MS).
The cash dividend will be paid to BATS stakeholders at the close of business on the day preceding the closing of BATS' public offering, according to the documents filed Thursday. Purchasers in the offering won't be entitled to the dividend, which depends on the completion of the IPO.
-By Jacob Bunge, Dow Jones Newswires; 312 750 4117; email@example.com