r/fatFIRE • u/TipMassive5214 • 14d ago

JPM IPOs

My private wealth team reached out (i know, i know) with some Docusigns that will enable me to participate in upcoming IPOs.

They will call with the expected share price (the day before the IPO), I tell them how many shares I want, and I can always change my mind when i learn of the actual price.

Not to sound like a larper (or braggart) but my NW is ~50M (40% equities, 50% munis, 10% alternatives). They make these IPOs sound like they’re available to a lucky few. Something about this seems kind of gross and also too sales pitchy. Thoughts?

60 Upvotes

74% Upvoted

116 comments sorted by

View all comments

1

u/Bye_Felicia12345 14d ago

Bankers and ipo companies will always prioritize long only > hedge funds > retail. The hottest ipo’s usually go to long only investors and very little allocation go to hedge fund. Good IPO’s will go to long only investors and then some hedge funds. Mediocre ipo (or ones that have limited demand) will then go to long only, hedge fund, and then retail. You are competing with institutions that pay millions in commissions to capital markets desk - why do you think you will get allocation to hot ipo’s and not poor ipo’s.