There are a number of factors that determine how IPO shares are allocated. To gain a better understanding of how many shares may be available to retail clients, review the deal's preliminary prospectus, commonly referred to as the red herring. Download infographic (PDF)
There are risks associated with investing in a public offering, including unproven management, and established companies that may have substantial debt. As such, they may not be appropriate for every investor. Customers should read the offering prospectus carefully, and make their own determination of whether an investment in the offering is consistent with their investment objectives, financial situation, and risk tolerance.
Eligibility for participation in IPO, Follow-On and Secondary offerings is reserved for brokerage customers with at least $25,000 in certain assets at Fidelity.
The $25,000 requirement will be determined weekly by aggregating all assets in retail accounts which list the same name and Social Security number. Institutional assets, such as annuities, 401(k) or 403(b) plan assets are excluded from the eligibility requirements. Other assets may be included in the calculation at our discretion.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
