which broker is better for participating in the U.S. IPOs?

J

Jason111

This is Jason from a comprehensive investment company and now invest more in the U.S. ipos, especially quality U.S. companies.

We would like to open an stock account for stock trading and the U.S. IPOs investment. Now,we hold stocks of Tesla and Apple with a market value of approximately 1 million dollars. We wanna do the stock transfer to the new account. Besides, could anybody kindly show us more details about participating in the IPOs on the broker? And also the requirements for account opening?

We really appreaciate your suggestions and help,please contact us with info@darkpoolglobal.com

Thank you!
 
A lot of generalizations - start by going to sec.gov and search for the form S 1 from recent IPO and you'll see who was in the selling group and the names you'll see at the top of the list are the banks you would expect Goldman,JPM,B of A Merrill and Morgan Stanley. There are other ways to participate via Venture firms where you'll end up with a piece of a fund, there are also dutch auctions and couple of other hybrid methods, but much of the IPO flow is going to come via the big 4. Will having an account assure me a piece of an IPO? Nope - lot's of considerations and "best" customers come first. Revenue dollars are a big consideration. Account size to put you one the radar starts in the neighborhood of $100 million and more, but the farther down the listing of the selling group the easier it will be, but they get a smaller allocations. Again generally you will be offered some names you may not want and this creates a real dilemma.
Will the process ever become more equitable for smaller accounts - sure there are some outstanding examples like BRK.B and MS's acquisition of E trade may help democratize the process.
Again generally you won't know how many shares your getting until prior to the pricing of the offering.
 
Sometimes you can buy on a secondary market before the IPO or at a fundraising round if you are an accredited investor. The IB employees who made $30m in Tesla manages to invest $3m in spacex last year.
 
I checked the website used in the email. I bet $100 that the main purpose is actually to lure investors to transfer money after aggressive sales calls from a "broker". This looks fraud from far away....

Just as a heads up for anyone receiving a call from "Jason" or one of his colleagues.
 
ajacobson said:
A lot of generalizations - start by going to sec.gov and search for the form S 1 from recent IPO and you'll see who was in the selling group and the names you'll see at the top of the list are the banks you would expect Goldman,JPM,B of A Merrill and Morgan Stanley. There are other ways to participate via Venture firms where you'll end up with a piece of a fund, there are also dutch auctions and couple of other hybrid methods, but much of the IPO flow is going to come via the big 4. Will having an account assure me a piece of an IPO? Nope - lot's of considerations and "best" customers come first. Revenue dollars are a big consideration. Account size to put you one the radar starts in the neighborhood of $100 million and more, but the farther down the listing of the selling group the easier it will be, but they get a smaller allocations. Again generally you will be offered some names you may not want and this creates a real dilemma.
Will the process ever become more equitable for smaller accounts - sure there are some outstanding examples like BRK.B and MS's acquisition of E trade may help democratize the process.
Again generally you won't know how many shares your getting until prior to the pricing of the offering.
More...
Thank you so much for your kindly reply.It's very useful.
 
El Trado said:
I checked the website used in the email. I bet $100 that the main purpose is actually to lure investors to transfer money after aggressive sales calls from a "broker". This looks fraud from far away....

Just as a heads up for anyone receiving a call from "Jason" or one of his colleagues.
More...
My purpose of posting here is to find a brokerage that is suitable for us to participate in the IPOs, not to give anyone the trading advice. So,we really appreciate it if someone who knows the qualified brokerage could give us some help.
 
ZBZB said:
Sometimes you can buy on a secondary market before the IPO or at a fundraising round if you are an accredited investor. The IB employees who made $30m in Tesla manages to invest $3m in spacex last year.
More...
Thank you, and this is a good idea.
 
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