This is What an IPO Disaster Looks Like
In a blaze of flash crashes and meta disasters, the IPO for alternative stock exchange Bats Global Markets Inc. was withdrawn on Friday.
The exchange, which operates as an electronic trading network, was priced at the lower end of its range for $15.25, but suffered a duo of flash crashes before trading even began. Early in trading, an error on the exchange caused a crash in Apple Inc. (NASDAQ:AAPL) stock trading on the BATS exchange.
The Apple crash was quickly followed by a crash in the price of the BATS exchange itself, as it tumbled to less that 4 cents per trade. The 9 percent drop in Apple brought the stock to $542.80 before trading was halted on the name. Shares of Apple reopened at $598.39.
BATS however, was not so lucky. After the 99.7 percent drop in price and technological malfunctions, the company was forced to nullify trades placed Friday. Trading on the BATS exchange never reopened and the entire IPO was withdrawn shortly after the series of malfunctions.
To contact the reporter on this story: Gillian White at firstname.lastname@example.org
To contact the editor responsible for this story: Damien Hoffman at email@example.com