Bidding higher doesn't matter as long as all bids were above final IPO Price. Everyone only got allocated 25-30%.
Price was $30.01. By the definition of this OpenAuction, does that not imply that if you bid for X shares >= $30.01, then you would be receiving all X shares?
No. In most dutch auctions, nobody gets the full amount at the end because the final price never ends perfectly on the number of shares offered. Because when the final price has more than enough shares than needed to compelete the 40 million share offering and more, everyone at and above the final price will have there shares reduced equally percentagewise. Since 40 million shares was offered at 30.01 and it looks like people got 30%. That means there was at least 80+ million shares bid at 30.01 if the dutch auction was done correctly. I would think people should get 80-90% of their requested size. That's hard to believe there was 80+ million shares bid at 30.01.
I guarantee there were around 120m shares bid on as I know people who put in genuine orders for 4k and 14k shares. Do the math and if 20k accounts bid only 2k shares each then the IPO was full. How many accounts are with those 10 firms that underwrote this deal? I say well over 2m accounts. This says that the IPO will pop nicely tomorrow if everyone wants more shares for full allocation
I was too stingy and bid only 100 at 31.00. My other laddered (and much heavier) bids (27.50, 29.00, 30.00) all missed. Boy would I have loved to get more. Well maybe it'll open below 30.01 and I won't have regrets.
This is interesting, they posted the numbers: http://www.interactivebrokers.com/en/general/about/mediaRelations/05-03-07.php?ib_entity=llc The auction clearing price was $33.00. The offering price was $30.01. A total of 13,504 bids were received in the auction. A total of 8,282 bids were successful. A total of 145,514,807 shares, in total, were bid for at prices equal to or in excess of the offering price. The pro rata fill rate for bids was 27.5%. My Comments: Wow, I really doubt IBKR will ever see the price of $30 ever again. 145 million shares requested at or above $30 so there is over 100 million shares demand left at $30.
If anyone sells there shares for less than $40 tomorrow you should be ashamed. The big firms GS, MER need shares and will buy them from you since they did not participate. The demand is for 140+ million up to $40 dollar bids at auction so that alone is three times this being floated.