As a full service broker and since our firm is part of the syndicate we have an allotment. We canvass our clients to explain the deal and for those who are interested, we add up the total expressed interest and then in-turn express that total interest to the syndicate. Once they know how much is available, they then tell us how much of our interest we have been granted. If it is 75% of the total expressed interest, then every client gets 3/4 what they wanted.

It is very possible to not get any, to only get a fraction, or to get the full amount of our expressed interest. For many, the gameplan is to flip the day of if it pops, and then buy back at lower levels in the next few weeks for a long term position. Generally, the buyers will not expect a pop, and be prepared to hold it long term – but if it does happen to gain 20% or whatever, might as well lock in some gains and buy it again later (if it drops after that, could very well keep going up, but that’s rare).

This is not a recommendation of such a strategy, please do your own due diligence and speak with your advisor to understand the risks associated with such a strategy.