CBOT moves closer to IPO

Chicago Board of Trade (CBOT) shareholders have overwhelmingly supported a second vote to clear the path for a possible flotation of the futures and options exchange.

An earlier vote on April 14, supported by 99% of voting members, allowed the CBOT to change from a mutual association to a stock-based holding company. Yesterday's vote, which received 98% support, allows the exchange's board to raise capital in various ways, including an initial public offering (IPO).

The exchange said on April 28 that it was planning an IPO for the second half of this year, which is expected to raise up to $150 million depending on market conditions. The proceeds from the IPO, which could involve up to 150 million authorised but unissued new shares priced at between $33 and $36, could be used to finance a merger, the exchange said.