How IPO Shares Allocated

IPO Intelligence • The IPO Process

How Are IPO Shares Allocated?

How banks decide who gets shares at IPO price.

Cluster: The IPO Process • Type: Evergreen Guide • Pillar: IPO Intelligence

Not First-Come, First-Served

10M share deal, 100M wanted. Banks allocate 10M based on quality.

Who Gets Favored

1. Large long-only holders — hold for years
2. Existing investors who double down
3. High-quality hedge funds
4. Retail via broker IPO programs (10-20%)

Why Retail Usually Can't Get IPO Price

IPO price is for underwriter's institutional clients who generate commissions. Retail buys at open.

Flipping

Banks track if you sell day 1. Flippers penalized in next IPO.

Part of The IPO Process

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