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CBOE seat sales imply $3 bln market value ahead of IPO

CHICAGO, June 14 (Reuters) - The Chicago Board Options Exchange’s biggest investor boosted his stake in the No. 1 U.S. options market on Monday in a bullish bet that puts CBOE’s value on the eve of its initial public offering at $3 billion, according to a spokesman for the investor.

Thomas Caldwell, chairman of Toronto-based Caldwell Investment Management, paid $2.475 million for one seat and $2.45 million for the other, his spokesman said.

The seat sales value CBOE shares at $29.69 and $29.38, respectively, above the expected IPO range of $27 to $29. The IPO is to be priced after markets close Monday, the exchange said.

With 102.6 million shares due to be outstanding after the IPO, the seat prices would indicate a market value for the exchange of just over $3 billion.

CBOE runs a private seat-sale market that confers membership in the exchange. After the IPO, the seats will be exchanged for shares in publicly traded parent CBOE Holdings Inc CBOE.O.

The private seat market is expected close down Tuesday, when shares are due to begin trading on Nasdaq OMX Group Inc's NDAQ.O Nasdaq Stock Market.

Monday’s purchases bring the total number of exchange memberships under Caldwell’s control to 56. (Reporting by Ann Saphir; editing by Jeffrey Benkoe)

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