Good IPOSs are like candies given to the ‘good’ children only....

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faheemzafar

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12/03/21

15:02

Post #: 51724031
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Originally posted by Sheriff58: ↑

Gemma, let me give you a bit of a summary on how the IPO allocations work. You are not able to call simply Morgans and request stock in an IPO, I assume you do not already a client of Morgans, it doesn’t appear so by what you have said anyway.
Morgans have lots of different types of clients with a variety of goals and risk profiles. Some clients suit IPO’s, others don’t. If you have an account with morgans and a relationship with a broker who knows what you are looking to achieve, taking into account your goals, money you want to invest, tolerance to risk etc then they may decide you are suitable for upcoming IPO’s. Morgans advisers bid for stock that they believe they will be able to allocate to some of their clients whom the investment may suit. As others have said the bidding was scaled e.g. advisers got less than they asked for because demand was high. Then the adviser speaks to clients and allocates the shares to their portfolio’s if they are interested in it.If one client changes their mind then those shares would just be allocated to any number of clients who would be happy to take more shares. There is no situation where a client would change their mind, and then you would be contacted, not even being a client, and offered the shares in an IPO.
I hope this makes sense on how the process works.

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Good IPOSs are like candies given to the ‘good’ children only. You need to have few deals with Morgans first. Have some portfolio with Morgans (I think may be 4-5 deals of minimum $10k) first. Have some good relationship with your advisor and then he will consider you for good IPOs like AirTakser. I was trying to shoot an empty gun but was explained the whole process by a Morgan Advisor. Not in exactly above words but between the lines. And it does make sense. Investors who are investing in different sorts of shares and raising have more rights on the ‘candy’ than a person with no relationship with a broker at all. Broker earns 1%+GST on every deal they make so you need to let your broker earn some money first and then they will consider you for IPO. For IPOs, the brokers does not charge you directly. They are paid by the listing company.
You would probably be able to apply for IPOs if the UK listing is not very popular and they have left with some shares.

I am using OnMarket and Equities etc. which are good services to apply for IPOs. But they rarely get allocations specially for in demand IPOs. Like I think for Singular Health OnMarket offer was opened for hardly 15mim.

In US market, SPACs are a good alternative to IPOs but there is more risk involved.

Best of luck to all.
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