In the wake of Refco's IPO windfall on 11 August, executives and analysts said the FCM now has tremendous flexibility to expand its business across a variety of fronts.
Refco raised $583m in its listing, which was immediately followed by a first day price rise of 25%. Shares opened at $22 and closed up $5.48 at $27.48. By 17 August the price had settled down to $27. The consensus amongst observers was that the floatation was a major victory for Thomas H Lee Partners, which took a 57% stake, along with several partners, in Refco for $507m last year. Lee sold 7.7m of its 56.4m Refco shares in the IPO for $159.5m in cash, trimming its holdings in the firm to 38% from 49%.
Following the listing, the question on many market participants' lips was what Refco planned to do with more than half a...