ORIGINAL POST, SEE UPDATES BELOW: We think it’s pretty safe to say this is the worst possible nightmare story for a new company that’s having an IPO.
BATS is an alternative stock exchange, which IPO’d today, after pricing last night at $15.25, the lower end of its range (already ominous).
And then it gets even weirder.
BATS itself is seeing a flash crash.
After its $15.25 IPO price, the stock is trading at less than $.04 per trade (those trades have been canceled).
Note that BATS is debuting on its own BATS exchange, so this is an indictment of its own service, that it can’t get the stock trading on its own market.
You can see the super-cheap BATS quotes here from Yahoo Finance:
UPDATE: Apparently BATS is having some kind of problem with its total “matching engine”, and that it’s slowly getting resolved. Meanwhile, BATS trading in itself has now been halted.
UPDATE: According to Bloomberg, the stock will restart trading sometime around 1:15 or 1:20.
UPDATE: They’ve delayed the trading once again.
UPDATE 3:12 PM: The BATS IPO will not open today, per a flash from Bloomberg. Total disaster.
UPDATE 3:44 PM: According to Bloomberg, the whole IPO has been withdrawn.
UPDATE 6:16 PM: According to Bloomberg, the withdrawal may cost Morgan Stanley and other underwriters approximately $7.1 million in underwriting fees.
UPDATE 7:05: According to WSJ, via CNBC, BATS now has no IPO plans for the foreseeable future.
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