The member-owned American Stock Exchange said Thursday it intends to convert into a for-profit corporation, after its board of governors approved a plan to demutualize the exchange.
Amex said its seat owners would have the opportunity to vote on the demutualization plan, which would convert their seats into shares.
Neal Wolkoff, chairman and chief executive officer, said Amex had been examining the structure of the exchange for months.
Earlier this year, Wolkoff said that he saw possible future scenarios for the Amex such as attracting strategic investment or undertaking an initial public offering.
Amex has had a troubled history. The exchange found it difficult to keep pace with its competitors in the 1990s, was bought by NASD — then the owner of the Nasdaq stock market — in 1998 and put on the block soon afterward.
After NASD failed to find a buyer, Amex’s members bought it in January 2005 and Wolkoff took the helm last April.
The Amex is valued at about $180 million, based on the price of its last seat sale, of $210,000. Seats are now being offered at $250,000 according to Amex’s Web site.
The demutualization plan would need approval of two-thirds of its 864 members, the U.S. Securities and Exchange Commission and a final nod from its board.
