IPO values ETF market maker Flow Traders at over €1.5bn

Jul 11th, 2015 | By | Category: ETF and Index News

Flow Traders, one of the exchange-traded funds leading authorised participants, market makers and liquidity providers, has floated on Euronext Amsterdam.

Flow Traders IPO values market maker at over €1.5bn

Dennis Dijkstra and Sjoerd Rietberg, Co-CEOs of Flow Traders

The initial public offering (IPO) of the Amsterdam-headquartered company was priced at €32.00 per share, valuing their total market capitalisation at €1.58 billion

Acting as a market maker, Flow Traders provides liquidity in ETFs and other exchange-traded products, enabling market participants to trade more efficiently.

In this role, the firm commits to buy or sell ETFs and ETPs at quoted prices and makes a profit on the spread between the purchase and sale prices.

The firm provides liquidity in over 4,000 ETF and ETP listings across the globe, tracking all underlying asset classes including equities, fixed income, commodities and currencies. They also act as an authorised participant, managing the market supply of ETF shares in concert with ETF providers.

Commenting on the listing, Sjoerd Rietberg, co-CEO of Flow Traders, said: “We are thrilled to complete our IPO with today’s listing on Euronext Amsterdam. The strong demand we have seen from investors, their high level of recognition of our innovative business model and track record and the support for our growth strategy confirm our confidence in a bright future as a listed company. We would like to welcome our new shareholders and are thankful for the trust they have placed in our company.”

The large scale growth in ETFs, driven by a continued secular shift to passive asset management, has provided significant opportunity for market makers such as Flow Traders to generate trading revenue by facilitating market liquidity. With record assets gathered so far in 2015, the trend looks set to be supportive of further growth.

“This IPO is the logical next step for Flow Traders, commensurate with the scale and status we have established to date as a leading, independent global liquidity provider in ETPs. The listing will increase our visibility and raise our profile with institutional counterparties, regulators, investors and prospective employees. In addition, the listing will support our organic growth strategy and enhance our ability to access capital markets,” said Dennis Dijkstra, co-CEO of Flow Traders

Listed on Euronext Amsterdam exchange under the ticker FLOW, the company traded €527 billion of ETPs in 2014, generating €172.7 million in net trading income, €84.1 million in EBITDA at a 49% margin and €67.9 million in profit.

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