Interactive Brokers to register up to 990,000 shares, as it seeks to incentivize customers
The company will be offering the opportunity for eligible persons to receive awards in the form of an offer to receive IBKR shares by participating in one or more promotions.
Electronic trading major Interactive Brokers Group, Inc. (NASDAQ:IBKR) has submitted a prospectus with the Securities and Exchange Commission (SEC), announcing the registration of up to 990,000 shares of its Class A common stock.
Interactive Brokers says it will be offering the opportunity for eligible persons to receive awards in the form of an offer to receive such shares by participating in one or more promotions that are designed to attract new customers to its brokerage platform, increase assets held with its brokerage business and enhance customer loyalty.
According to the company, the promotions represent a unique way to grow its brokerage business and enhance customer engagement, branding and loyalty.
The shares to be issued to eligible persons in the promotions primarily will represent newly issued shares of Interactive Brokers Group, Inc. Class A common stock, although in limited instances, the company may acquire shares through open market purchases or use existing treasury shares subject to applicable law. As a result of the promotional nature of the offering, Interactive Brokers will not receive any cash proceeds from the issuance of its shares of Class A common stock.
The Promotions primarily will be connected with Interactive Brokers’ “BET, LEARN, WIN” simulated betting product or associated with a customer referral program, although the broker says it may offer other promotions too. Participants that do not wish to receive shares awarded in a promotion may waive their rights to such an award although there is no assurance an alternative award will be provided.
The promotions are not designed for short-term investors as participants will not have complete control over the exact timing of the awards and the shares may be issued with restrictions.