Re: E*OFFERING and E*Trade's IPO Strategy.
Hi Jay!
Anyone know about the E*offering company thats planned on opening later this year?
Mmm, something we probably should be aware of, as it will affect E*Trade's IPO situation.
From Raging Bull, January 15, 1999 By Matthew W. Ragas, Editor
The New IPO Shop on the Block
This past Tuesday, E*TRADE announced plans to invest in E*OFFERING, an online full service investment bank...
E*OFFERING is expected to lower the cost and increase the speed of the IPO process. E*OFFERING will charge less than the traditional 7% of gross funds typically generated by investment banks for IPOs. Already E*TRADE offers their customers regular access to a variety of IPOs, including some sizzling hot Internet IPO issues. E*OFFERING will allow E*TRADE customers still greater access to a variety of tech IPO's in the $25-$50 million range....
It's pure genius on the part of E*TRADE, with their ravenous customer base of users eager to swallow up small tech IPOs. Show me an individual investor who wouldn't appreciate a standing invitation to take a piece of some hot tech IPO that they have been reading about in The Wall St. Journal and hearing about on CNBC for the past month. In my opinion, E*OFFERING's involvement with E*TRADE will prove a unique and powerful customer acquisition tool for the company.
Does E*TRADE mind if new customers open accounts simply to gain access to one of E*OFFERING IPO's? Not at all. Once it has that account, E*TRADE can work on building a long-term relationship with that individual and can massage him or her into its larger financial services mix. This clever IPO marketing mechanism will have slashed the cost of customer acquisition.
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Full article at:
http://www.ragingbull.com/articles/cyberstock/01-15-99/main.shtml
Best wishes,
Tom (a base, ravenous customer) |
