US retail investors now have the opportunity to request shares in initial public offerings directly from the Coinbase app before public trading commences.
Coinbase, the popular crypto exchange, is broadening access to primary financial markets by enabling US retail traders to participate in initial public offering allocations.
In a statement, Coinbase mentioned,
“Coinbase is enhancing access to primary financial markets by offering initial public offering (IPO) allocations to U.S. retail traders. Starting with Oura’s IPO this week, eligible customers can request shares at the offer price before open-market trading begins.”
Oura specializes in a smart ring that monitors sleep, heart rate, body temperature, and daily activity.
To participate, users can navigate to a dedicated IPOs page within the app, fund their account, and submit a “Conditional Offer to Buy” once the price range is disclosed.
The allocation process is managed by Coinbase Capital Markets, a FINRA-registered broker-dealer that acts as a best-efforts selling-group member and routes orders through clearing partner Apex Clearing.
Shares are secured at the IPO price, with final allocations varying based on supply and demand.
Upon commencement of public trading, the shares become tradable on Coinbase, with priority given to investors looking to hold long-term positions.
Engaging in selling within the initial 30 days may result in a 60-day suspension from future IPO participation and reduced allocations thereafter.
All users are required to complete a FINRA eligibility questionnaire.
Coinbase Capital Markets does not underwrite deals, maintain inventory, or take the opposing side of trades.
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