US retail investors are gaining the ability to request shares in initial public offerings straight from the Coinbase app before public trading begins.
The crypto exchange says it is expanding access to primary financial markets by bringing initial public offering allocations to US retail traders.
Says Coinbase,
“Coinbase is expanding access to primary financial markets by bringing initial public offering (IPO) allocations to U.S. retail traders. Beginning with Oura’s IPO this week, eligible customers can request shares at the offer price before open-market trading starts.”
Oura makes a smart ring that tracks sleep, heart rate, body temperature and daily activity.
Users navigate to a new IPOs page in the app, fund their account, and submit a “Conditional Offer to Buy” once the price range is available.
Allocations are handled by Coinbase Capital Markets, a FINRA-registered broker-dealer acting as a best-efforts selling-group member that routes orders through clearing partner Apex Clearing.
Shares are booked at the IPO price, though final amounts may be full, partial or zero depending on supply and demand.
Once public trading starts, the shares become tradable on Coinbase.
The platform gives priority to investors planning to hold long term.
Selling within the first 30 days can lead to a 60-day ban from future IPO access and smaller allocations afterward.
All users must complete a FINRA eligibility questionnaire.
Coinbase Capital Markets does not underwrite deals, hold inventory or take the opposite side of trades.
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