Online broker Waterhouse Securities filed for an initial public offering on Friday that would raise $1 billion (US$). Considering how the stocks of competing brokers like E*Trade (Nasdaq: EGRP) and Ameritrade (Nasdaq: AMTD) have performed this year, the Waterhouse offering could be the IPO of the year.
Waterhouse, the third largest online discount broker globally by trading volume, is owned by the Toronto-Dominon Bank Financial Group (NYSE: TD), and investors who want to ride the IPO wave might want to considering investing in TD Bank. Shares of TD Bank closed down 7-1/6 to 53-7/16 on Friday.
The stocks of parent companies often run up as their IPO spin-offs approach. The rise of shares of Barnes & Noble (Nasdaq: BKS) is a good recent example.