What if an IPO is priced above or below the price range?
As long as the final price is not 20% above the "price range", your "conditional offer to buy", is still valid. As an example, an offering with a price range of $18-$20 could be priced as high as $23.99 and your "conditional offer to buy" will still be valid. Keep this in mind when considering placing a "conditional offer to buy" for any IPO.
An estimated range, usually in $2.00 increments ($18-$20 as an example) within which an Offering is expected to be priced. This range can change during the Registration Period and is only a guide. A final price will be chosen on the Effective Date.
What if an IPO is priced 20% or more above or below the price range?
If an offering prices 20% or more above the high end of the price range, your "conditional offer to buy", is no longer valid. We will send you a notice and you will have a limited amount of time, 60-90 minutes to reconfirm your order. If your order ...
What is a price range and what does it mean?
The price range of an offering is usually in $2 increments ($18-$20 as an example). The Underwriters and Issuers believe the company is worth a price per share in this range. Institutional Investors place orders usually within this range, but ...
Conditional offer to Buy (COB) Price Range
The "COB Price Range" is any final price that is less than 20% above the high end of the price range. As an example, a COB for an offering with a price range of $18-$20 would still be valid if the final price is below $23.99. Keep this in mind when ...
What is an IPO? How does it work?
An Initial Public Offering (IPO) is the first time that the stock of a private company is offered to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done by large privately owned ...