I picked up Interactive Broker IPO shares
Posted by Frugal on May 4th, 2007
Interactive Broker at www.interactivebrokers.com has closed its IPO auction yesterday. Given the recent market craze about exchange and financial companies, IBKR has done its IPO at the right time. The IPO was well over-subscribed from 20 million shares at an initial price range of 24 to 27, raised to 40 million shares with price range of 27 to 31. The final clearing price was $30.01, and I assume that other people like me didn’t get the full allocation, but more close to one third. My bid price was actually quite close to the clearing price, but I wish it’s cheaper. At $30.01, I’m inclined not to add anymore shares.
We shall see whether IBKR will open trading today on Friday. The shares that I got are quite minimal. They won’t matter to my overall portfolio whether it’s up or down (even by a lot).
In any case, my cost was just $20 for domestic wire transfer because that was the only way that I could make to the IPO on time.
For those who bought into the IPO of IBKR, best luck to you (and me too).
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May 4th, 2007 at 1:56 pm
Hey 1st Million,
I’ve been reading your blog for a while and I feel you’ve shown a strong track record of picking good stocks. Brokerage firms are already quite compeditive, why did you pick IBKR?
Best,
James
May 5th, 2007 at 2:51 am
I was able to get some pre IPO shares as well but I dropped them after the stock only popped 10% during the first hour of active trading.
May 6th, 2007 at 2:24 pm
Actually, I read an article on MarketWatch that said the clearing price (as defined in the prospectus) was $33 for IBKR. The IPO managers made the decision to make the offering price for IBKR lower, at $30.01 per share.
I put in an order for 800 shares (at $31 and above) through E*TRADE, but was allocated only 400 shares. The broker’s policy is to do a random allocation when there aren’t enough shares to go around. I wonder if any individual got allocated more than 500 shares of IBKR in total.
May 6th, 2007 at 7:23 pm
Some very good tips can be found here, thanks.
http://www.volkskrantblog.nl/blog/3294
May 8th, 2007 at 7:19 am
This is my short-term trade not working out. It could be a long term holding, except not at this price. I guess I should have sold it the first day. Unfortunately, I don’t have time to watch/trade the market all day long.