how the shares in ipo are allocated to investors


1 Answer(s)


This depends on which country the IPO is in.

In India, retail investors apply for allotments by responding to media advertisements by the company. The bankers and the company will then allocate to each retail investor based on availability and first come first serve basis.

In the US, the bankers will pick a list of mutual funds etc to provide the shares to. Then HNI clients of the banks will get allocation.