How to participate in public offerings

How to participate in public offerings

Schwab provides eligible clients with access to initial public offerings (IPOs) Tooltip and secondary public offerings (SPOs) Tooltip . When Schwab receives an allocation for public offerings, advisors working with Schwab Advisor Services™ can purchase shares on behalf of their clients.

  • Investment Agreement to IPO of Equity Securities form, submitted to Schwab within the past 12 months
  • Authorized agent(s) Tooltip designated to take evening calls 
  • Adobe® Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website)
  • Your name, phone number, firm's name, email address, and master account number
  • Your client's name, account number, and quantity of shares requested
  • Information for the offering, including offering name, total number of sub-accounts, and total number of shares requested
  1. Review the calendar below for a list of currently pending IPOs. Information for this calendar updates daily.
  2. Click the offering symbol in the calendar to view offering information, such as the prospectus and Conditional Offer to Purchase deadlines.
Offerings calendar*
OfferingSymbolTypeSharesExpected price rangePricing date
      

The Offerings calendar does not include SPOs.

*Communications found on the Offerings calendar do not constitute an offer to sell or solicitation of an offer to buy. There shall also not be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any state.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted prior to the time the registration statement becomes effective.

  1. To confirm your eligibility Tooltip , locate the Investment Advisor Agreement to IPO of Equity Securities form on the Forms Library on Schwab Advisor Center. Click Download PDF.
  2. Complete all necessary fields.
  3. Print the form and obtain the signature of a principal of the firm. Fax the signed form to the Schwab Advisor Services IPO Trading Desk at 877-857-2154 or email to ASIPO@schwab.com via a service request to the Schwab Advisor Center site. 
  4. You must repeat this process every 12 months before participating in any offerings.

Contact the IPO Trading Desk at 877-857-2154 and provide your email address and master account number. You will receive announcement emails for initial and secondary public offerings. These emails include links to the preliminary prospectus and offer submission deadlines.

  1. Monitor offer availability.

    Announcement email
    • Check your email inbox regularly for new public offering announcements from the IPO Trading Desk
    Service Guide Offering Calendar
    • Select Investment Products > Equities, Mutual Funds & Options > How to participate in public offerings > How to view public offerings in the Offerings Calendar*
    IPO Trading Desk
    • Call Schwab Advisor Services IPO Trading Desk at 877-857-2154
  2. Review the preliminary prospectus.

    Announcement email
    • Review the submission deadline and click Preliminary Prospectus to view the offer's details.
    Service Guide Offerings Calendar
    • Click the offering symbol; review the submission deadline and click Preliminary Prospectus to view the offer's details.
  3. Complete all necessary fields on the Conditional Offer to Purchase form.
  4. Prior to the submission deadline Tooltip , print the Conditional Offer to Purchase form and obtain signatures from the authorized agent submitting the Conditional Offer to Purchase. Send the signed form to the IPO Team via a Schwab Advisor Center service request, or fax to 877-728-9801.
  5. Authorized agent(s) must be available the evening the offering is priced for a call from an IPO Trading Desk representative to affirm the shares.

*The Offerings calendar does not include SPOs.

If you have submitted an Investment Agreement to IPO of Equity Securities form to confirm your eligibility:

  • The IPO Team will process the form on the day of receipt and will contact you if needed.

Once you have submitted your Conditional Offer to Purchase form:

  • You may verify the IPO Trading Desk has received the Conditional Offer to Purchase form by calling 877-857-2154.
  • After the IPO Trading Desk receives the form, an IPO representative will call the authorized agent listed on the Conditional Offer to Purchase form to confirm share allocation. This call generally occurs in the evening hours. They will also discuss the IPO's price and any other changes at the time of pricing.
  • If all designated contacts are unavailable, the representative will leave a message. The authorized agent must call the IPO Trading Desk back within one hour. The firm will not be allocated shares if designated contacts do not respond to the message or cannot be reached, and a message cannot be left.
  • Once the issue has been priced and the registration statement has become effective (whether IPO or SPO), the designated contact is required to provide positive affirmation of their Conditional Offer to Purchase. Positive affirmation must be given within one hour of the original call or message from the IPO department. Allocation directions will be requested at the time of affirmation. If the advisor fails to provide this information in the time allowed, they will not receive shares.
  • Once affirmed, Schwab will attempt to distribute shares to as many of the eligible advisors as possible. In the case of excess demand, Schwab uses an allocation model to help achieve distribution goals.
  • If you have questions about participating in IPOs, call the IPO Trading Desk at 877-857-2154.

 

Go to the Forms library on Schwab Advisor Center and select the forms below:

Form: Conditional Offer to Purchase
Form: Investment Advisor Agreement to IPO of Equity Securities

Can I change or withdraw a Conditional Offer to Purchase?
Yes. You may make changes to the Conditional Offer to Purchase during the following times:

  • While the Conditional Offer to Purchase window is open—You may revise the original Conditional Offer to Purchase quantity for greater or fewer shares or may withdraw the original Conditional Offer to Purchase without any obligation, commitment, or penalty of any kind.
  • When the Conditional Offer to Purchase window is closed—You may revise the original Conditional Offer to Purchase quantity for fewer shares only, or you may withdraw the original Conditional Offer to Purchase without any obligation, commitment, or penalty of any kind at any time up until you affirm the Conditional Offer to Purchase.
  • During the affirmation process—You may affirm for the entire Conditional Offer to Purchase amount, affirm for fewer shares, or withdraw the Conditional Offer to Purchase without any obligation, commitment, or penalty of any kind.

Are there any holding period restrictions for reselling IPO shares?
You are free to sell shares at any time.

Is there anything my client should know about selling or holding SPO shares?
SPOs are not marginable for a period of 30 days from the pricing date. When a secondary offering is allocated to a client's account, the offering displays in the account position under a seven-digit security number, after which time it becomes marginable.
 
When placing a sell order for SPO shares, make sure to use the current trading symbol, not the security number. If a sell order is entered using the security number, it will not execute and will create a market risk for the client's account and for Schwab.

How are IPO shares allocated?
Shares are allocated using an automated allocation model and distributed to accounts from the results. Allocations are in 100 minimum, 50 share increment lots.

The allocation model does not ensure clients will be allocated shares in any public offering. Schwab reserves the right to change the allocation model or the method by which it allocates shares at any time and may reject any offer to purchase in whole or in part at its sole discretion.

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