Reuters' automated trading subsidiary, Instinet has filed a registration statement with the US Securities and Exchange Commission for a proposed initial public offering (IPO), one year after Reuters announced an IPO was a strategic option under consideration.
Instinet intends to apply for quotation of its common stock on the Nasdaq National Market, with the IPO expected to be completed by the middle of 2001. This will be a primary offering of common stock, all of which will be issued by Instinet, reports the company.
Following the IPO, Reuters will continue to own a substantial majority of Instinet's common stock.
Instinet is the world's largest electronic agency securities broker, trading in 40 securities markets, with membership of 20 exchanges throughout North America, Europe, and Asia. Founded in 1969, Instinet was acquired by Reuters in 1987 and has grown substantially under Reuters ownership in both US and international securities markets.
Peter Job, Reuters chief executive, says: "A public listing is a natural evolution for Instinet. Reuters believes that backing an independent Instinet whilst remaining a substantial shareholder is the best way forward for Reuters shareholders."