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Could I buy shares of upcoming NASDAQ IPOs at their offer price? For example: The upcoming Roblox IPO in 2021. If so, how?

Personal Finance & Money Asked by Vineet Pande on August 6, 2021

This is intended for me: a regular 30 yr old guy who works 9-5, and has a middle class income.
Please describe well. I am nearly a complete noob. I know a little though.
Also I am from Canada.

2 Answers

With traditional U.S. IPOs, institutional investors typically received the majority of IPO shares. Most of the portion that retail gets is allocated to the preferred customers of the underwriters. Therefore, the odds of you getting any shares of a highly desirable IPO is small, even nil if the issue is oversubscribed.

Occasionally, a company goes public on its own rather than hiring an investment bank to take it public. With these, you have a much better chance at getting shares but they tend to be lower quality companies.

And then there's the issue of meeting your broker's eligibility requirements as well those of FINRA.

The short answer is that you need connections to participate in the good IPOs.

Correct answer by Bob Baerker on August 6, 2021

You're in Canada, so it'll be difficult. And you're no one special to the investment firms that underwrite IPOs, so there's no reason for them to sell to you as opposed to their big customers.

Thus, your prospects are about as dim as a very deep and dark cave.

Answered by RonJohn on August 6, 2021

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