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Non-Tech : Wit Capital - The way of the future? -- Ignore unavailable to you. Want to Upgrade?

To: Kaliico who wrote (5663)	6/26/1999 1:18:00 PM
From: briles	Respond to of 16809

"Does this mean the distribution lists we see posted on this board, are in reality not the actual distribution?" Correct. Those are the shares the firms agreed to underwrite. As far as I know, there is no source which gives the actual allocation totals. One recent example of this is the Goldman Sachs IPO. Although they listed many firms as co-underwriters, it sounds like GS did the majority of the allocations. From Business Week online: "...in a stunning break from decades of underwriting tradition, Goldman dissed its entire syndicate of 12 co-managers, from Morgan Stanley Dean Witter to Merrill Lynch & Co., by paying them millions to do nothing. Usually, co-managers get paid to sell a set allocation of the total stock to their customers. Instead, Goldman allocated no stock to any of its traditional competitors, placing almost every share in the hands of its own customers." businessweek.com And, from the GS SI thread: 206.253.196.11

To: Kaliico who wrote (5663)	6/26/1999 1:24:00 PM
From: ChopChop99	Read Replies (1) \| Respond to of 16809

I interpret that rule to mean that... Whatever number of shares they get for distribution, must be distributed and they cannot hold any for themselves. Also, while the number of shares that an underwriter agrees to take is not necessarily the number they receive, I'd be willing to bet that in most cases the two numbers are identical, with the allocations to each underwriter negotiated to that figure before it's published. Thus, I believe that Wit probably got 480,000 shares of JNPR... That was enough shares for 480 people... Across all the boards, I've seen a total of 4 or 5 people who say they got allocations... From this, we can very roughly deduce that about 1% of the Wit applicants on a hot IPO actively participate in online discussions about IPOs.