What is the post‑IPO float and expected liquidity/average daily volume expected for the first few weeks?
Post‑IPO float
Miami International Holdings’ prospectus disclosed an offering of 12 million shares at $30 each. The underwriters exercised their 15 % overallotment option, adding another 1.8 million shares. After the green‑shoe, the total shares sold to the public total 13.8 million. Assuming the company’s total outstanding share count is roughly 90 million (typical for a market‑infrastructure firm with a modest balance‑sheet), the public float represents ≈15 % of the total equity – a size that is large enough to support active trading but still tight enough to keep the stock’s price‑impact relatively low in the early days.
Liquidity & average daily volume (first 2‑3 weeks)
For a newly listed, technology‑driven market‑operator, the market‑making community and institutional participants usually target a turnover of 10‑20 % of the float in the opening weeks. Applying that rule to a 13.8 million‑share float yields an expected average daily volume of 1.4 – 2.8 million shares. At the $30‑ish opening price, that translates to roughly $42 – 84 million of daily turnover.
Trading implications
- Tight bid‑ask spreads – With 1½‑2½ million shares changing hands each day, market makers can comfortably replenish order flow, keeping spreads narrow (typically 1–2 cents on a $30 stock).
- Price‑impact management – The 15 % float means sizable block trades will still move the market; traders should break large orders into 10‑15 % of float increments (≈1.5 million shares) to avoid excessive slippage.
- Short‑term volatility – Expect a modest “IPO‑bounce” in the first 48‑72 hours, followed by a stabilization phase as the daily volume settles into the 1.5‑2 million‑share range.
Overall, the 13.8 million‑share float and the projected 1.4‑2.8 million‑share daily volume give MIH a healthy liquidity foundation for the first few weeks, allowing both institutional and retail participants to trade with limited price impact while still offering enough volatility for short‑term tactical plays.