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US centric answer: An investment bank is hired to determine the value of the company. The IB looks at the inherent business as well as industry comparisons, growth prospects, etc. After performing this initial valuation, later on in the process the IB does a roadshow where they travel from city to city, giving presentations to large investors (institutional,...


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In most cases the subscribers to an IPO are institutional investors - investment banks who want to act as market makers for the instrument. They may also buy for their prop. book and to pass on to investors who have subscribed through them but primarily since the market is going from no available liquidity to some available liquidity a market maker needs to ...


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The individual investor faces no restriction on selling publicly traded IPO shares. However, some brokers have a policy which reduces a broker's commission if his clients 'flip' shares immediately so if anything, that might hinder your ability to obtain future IPOs if dealing with a traditional broker. For insiders, an IPO may have a lock-up provision which ...


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The IPO pricing of a SPAC at $10 is irrelevant to you as a target company shareholder. All that matters to you is what is being exchanged for your shares, i.e. how much cash (if any) and how many SPAC shares, at what price, for each of your target company shares. Once the acquisition closes, you will own some SPAC shares that fluctuate in price like any ...


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