Keefe Bruyette & Woods' (KBW) last quarter as a private company was a good one.KBW, the investment firm's parent company, says it earned $9.3 million, or 35 cents a share, in the third quarter, which ended Sept. 30. In the year-ago period, the firm earned $4 million, or 14 cents a share. Keefe went public in an IPO on Nov. 9, which raised $143 million. On the first day of trading, Keefe shares, which priced at $21, rose 28% to close at $26.83. The stock has continued to rise since the initial public offering, closing Tuesday at $28.59. Shares are no up 36% since their debut. In the third quarter, total revenue rose 19.5% to $93.2 million. Investment banking revenue rose 27% to $49.2 million. Commission revenue was up 5.7% to $25.5 million. "Since mid-2004 our European equity sales, trading and research has gained significant traction, reaching our run rate expectations in the latter part of 2005 and continuing to grow at double digit rates," the company says. "We believe the growth in commission revenue in the third quarter of 2006 compared to the same period last year to be a more sustainable rate as we continue to build out our European equity platform." Keefe, which specializes in providing advisory services to financial services companies, is one of several investment-banking boutiques to go public this year. Others that have sold shares to the public include Evercore ( EVR - Get Report), Cowen ( COWN - Get Report) and Thomas Weisel Partners ( TWPG).
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