Interactive Brokers’ Dutch Auction IPO
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Normally as individual investors we don’t have access to the IPOs, as they are usually handled by the big investment bankers (Goldman Sachs, Merril Lynch,…), and the IPO stocks usually are sold to the institutions (a.k.a, rich people) and they can make the easy money.
This has changed by the Google IPO in August 2004, at the time the founders (Larry and Sergin) decided to try the Dutch auction so that individual investors can get a piece. The IPO was not well received because of the not-so-good market condition at the time and confusion over Dutch auction process. This time, Interactive Brokers, will follow the path of Google for its $500 m public offering. They filed the S1 prospectus to SEC today. Here is an introduction regarding how to bid.
Recently the exchange stocks are very hot. NMX (New York Mercantile Exchange) IPO was well received.
Be aware IPO stocks are usually a bit volatile, though.