Miami International prices US$345m IPO above range at US$23
Miami International raised US$345m late Wednesday from its NYSE IPO, which was heavily oversubscribed and priced at a significant premium to the original valuation target.
JP Morgan, Morgan Stanley and Piper Sandler priced a full-sized offering of 15m shares at US$23.00, or US$2 above the high end of the US$19-$21 marketing range. The offering was 20x oversubscribed, with more than 400 investors putting in for the deal, a banker involved in the offering told IFR.
Heavy investor demand saw the banks place roughly half of the offering with 10 institutions and 70% with the top 25. Fully one-third of investors who submitted orders received no stock at all, the banker said.
Wellington Management anchored the offering with a US$40m upfront order.
Miami International, which operates electronic options, futures and equity exchanges, was valued at a fully diluted market capitalization of US$2.25bn. The US$23.00 offer price valued the exchange operator at 21x multiple of projected 2026 earnings per share, based on estimates provided by the joint bookrunners.
That valuation is a slight discount to the 24x multiple at which larger publicly traded exchanges such as NYSE parent Intercontinental Exchange, Nasdaq and CBOE Global Markets currently trade, according to LSEG data and analyst consensus.
Miami International shares will debut Thursday under the symbol “MIAX”.
In the first half of 2025, the exchange operator made a US$2.1m net profit while growing revenue by 21% to US$654.9m.
The exchange operator is using some of the money raised to repay a US$140m term loan owed to Warburg Pincus, with the remaining proceeds going to fund growth, including plans to open a physical options trading floor in Miami.
Warburg saw its ownership stake diluted to 4.8%. Other backers include financial services-focused investors Susquehanna International Group (4.2%) and Wolverine Holdings (4.8%).
Miami International has a 16.4% market share in the options market across its four virtual exchanges, the company outlined in the IPO prospectus. The company, which also operates two futures, one cash equities and two international exchanges, is using its successful options trading business as a model for expanding into new markets.