Source item
Open original source ↗These people have no idea how IPOs are actually allocated.
Top 15 clients of the investment bank get most of the shares. And have a strong voice in dictating price. It could EASILY be a blind auction (direct listing) but alas it’s a captured insider’s game. The “customer” is the buy-side. Plain and simple.
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Segment 1 · characters 0–58 · Original segment ↗
Segment 2 · characters 60–308 · Original segment ↗
Quoted context
These are the quoted author’s words.
We have nearly $300 million of client assets at Fidelity and $500 million with Charles Schwab. We asked them about getting $SPCX shares for our clients and they said demand is insane and each client will be lucky if they get one share and there is no special carveout for $TSLA shareholders as I warned. I hope the people we talked to were uninformed so we will try again, but this is about what I expected.
bradsferguson ↗