Funds News

UPDATE 1-CBOE member vote paves way for IPO

* CBOE members vote to demutualize

* Demutualization paves way for IPO

NEW YORK/CHICAGO, May 21 (Reuters) - Members of the Chicago Board Options Exchange, the oldest and biggest North American options market, approved a plan on Friday to convert the member-owned operation to a shares-based company, paving the way for a long-awaited IPO.

The vote, held late on Friday, was approved by a majority of members. The plan had been expected to pass.

The so-called “demutualization” of the exchange will allow the CBOE to move ahead with its IPO as CBOE Holdings Inc.

CBOE plans to raise at least $292 million by selling 11.7 million shares for a minimum price of $25 each.

The exchange has not yet set a price range for the offering, but lead underwriter Goldman Sachs has set a per-share minimum of $25.

Analysts have said the parent of the last free-standing major North American financial exchange, CBOE Holdings Inc should draw strong interest.

The shares are expected to start trading on Nasdaq OMX's NDAQ.O Global Select Market under the ticker symbol "CBOE" on June 15. (Reporting by Clare Baldwin in New York and Doris Frankel in Chicago; editing by Andre Grenon)