This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hot Financial IPOs: Vantiv, BATS

NEW YORK ( TheStreet -- The payment processors have been hot properties this year, and now a new name is set to make its public debut: Vantiv (VNTV - Get Report).

The Cincinnati-based company, which processes more than 11.4 billion ATM and POS transactions and almost $400 billion in debit card and credit card sales each year, is seeking to raise $500 million through the sale of 29.4 million shares at $16-$18 each.

Vantiv plans to use the proceeds of the offering to pay down debt and reduce interest expenses. At the mid-point of its pricing range, Vantiv shares would have a price-to-sales ratio of 2.2X, in line with competitors like Fiserv (FISV) and Global Payments (GPN).

In addition to those companies, Vantiv faces competition on the merchant side from Bank of America (BAC), Chase Paymentechand First Data (FDC). In its financial institution service business, it also competes with First Data, Fiserv and also Visa (V).

If those competitors weren't daunting enough, new players to the field include PayPal and Google (GOOG). These companies have better name recognition among customers.

Vantiv though offers clients a single technology platform that it believes provides a competitive advantage. It can deliver new applications to its customers quickly and in large scale through this platform, which also makes its different products easy to connect to and use.

Once a division of Fifth Third Bank (FITB - Get Report), Vantiv was spun off and launched as a joint venture between Fifth Third and Advent. It was only last year that the company changed its name from Fifth Third Processing to Vantiv.

In the opinion of IPO Desktop President Francis Gaskins: "Vantiv seems like a good buy at the price range mid-point to hold for a month or so after the 40-day analyst report quiet period ends."

Another financial offering on the calendar this week is BATS Global Markets (BATS), which is looking to raise $107 million through the sale of 6.3 million shares priced at $16-$18 each. BATS is the third largest exchange operator in the U.S. behind NYSE Euronext (NYX) and Nasdaq OMX Group (NDAQ - Get Report), but is still much smaller.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
NYX $0.00 0.00%
FITB $21.05 -0.10%
NDAQ $50.99 -0.08%
VNTV $43.85 -0.34%
AAPL $121.53 0.19%

Markets

Chart of I:DJI
DOW 17,636.21 -53.65 -0.30%
S&P 500 2,102.45 -1.39 -0.07%
NASDAQ 5,139.5020 +11.2210 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs