The IPO however is unlike typical reasons. A mere 407,000 shares were sold in the IPO by Gain Capital, the remaining 8.5 million shares of common stock was sold by existing shareholders who were cashing in on the exit. While most shareholders exited, Vantage Point continued to hold on to a near 30% holding in the company.

The $3.6 million raised through the IPO only cover the expenses. The company will trade under the ticker GCAP. The mood set by the first two forex IPOs is not exactly the best. Both are clearly means for investors and existing shareholders to exit. There is not much capital generated for growth opportunities or to accelerate operations.

Gain Capital is an online provider of products and service in forex and other commodities such as gold. The company has customers in 140 countries, with over 50% of the clients being outside the United States. Its total annual customer trading volume grew from $231.9 billion in 2005 to $1.2 trillion in 2009. For the nine months ended Sept. 30, Gain Capital generated $148.1 million in revenue and net income of $18.9 million.

Gain Capital IPO At $9 Per Share – Lower Than Expected Valuation post from Forex Trading Blog

The initial public offering translates to an FXCM valuation of just over $1 billion; which is a 16 times FXCM’s earnings multiple of 2010 after floating 15,060,000 Class A common stock priced at $14.00

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are acting as joint book-running managers of the offering. Barclays Capital Inc., Deutsche Bank Securities Inc., Sandler O’Neill & Partners, L.P. and UBS Securities LLC are acting as co-managers.

FXCM IPO Done At $211M post from Forex Trading Blog