2001 Press Releases
FOLIOfn Teams with WR Hambrecht + Co to Make IPOs More Accessible to Investors
01/05/2001
VIENNA, Virginia – FOLIOfn, Inc. announced today that its members will have the opportunity to participate in initial public offerings (IPOs) through WR Hambrecht + Co’s OpenIPO, a new, more accessible way to take companies public using an auction-based model. FOLIOfn has also added a new IPO Center where interested members can sign up to receive alerts when an IPO becomes available, learn more about offerings, and bid on those offerings.
“OpenIPO is a trailblazer in using technology to democratize and improve the traditional financial services model,” said FOLIOfn founder and CEO Steven M.H. Wallman. “Typically, IPOs are only available to institutional investors and a few, select individual investors. In contrast, the OpenIPO process is available to all qualified investors. It’s designed to achieve a fair valuation that brings the issuing company the resources it needs and deserves, and encourages the participation of long-term investors.”
Bill Hambrecht, Chairman and CEO of WR Hambrecht + Co., added, “Steve Wallman recognized early on the ability of the Internet to drastically change how investing is done and, like WRH+Co, FOLIOfn is innovating the financial services industry by putting more choice and power in the hands of the individual investor.”
In the OpenIPO process, interested participants bid on stock at the price they believe is fair and all qualified bids—whether from an individual or an institution—are treated equally. An OpenIPO auction is typically open for bids for 3-5 weeks prior to the effective date of an offering. FOLIOfn members will be able to submit bids directly from the IPO Center.
Once the bidding concludes, the OpenIPO auction assembles the bids and, working from highest to lowest, finds the first bid price that will sell all the offering’s shares. This is the maximum price at which the issuing company will offer its shares. Taking that into account, along with a number of economic and business factors, the issuing company and underwriters then decide the offering price.
All participants bidding at or above the offering price will receive, at a minimum, a pro-rated amount of shares for which they bid, and all winning bidders pay the same price for shares they buy.
About WR Hambrecht + Co
WR Hambrecht + Co (www.wrhambrecht.com) is a financial services firm committed to using the Internet and auction process to provide openness, fairness and access for investors, as well as fair pricing for issuers. The firm’s earliest and best-known innovations are OpenIPO, an auction-based model for initial public offerings, and OpenBook, an auction for corporate debt offerings. WR Hambrecht + Co provides underwriting and advisory services for technology and emerging growth companies, as well as equity research, sales and trading, electronic brokerage and private equity offerings for institutions and individuals. WR Hambrecht + Co has offices in San Francisco, New York, Boston, Philadelphia and Seattle and is backed by industry leaders including: American Century, American Express, Crimson Ventures, epartners, Fidelity Ventures, Instinet Corporation, Novell, Park Avenue Equity Partners, LP, Scudder Technology Fund, Kemper Technology Fund and Texas Pacific Group.
About Folio Investing
Folio Investing, a division of FOLIOfn Investments, Inc., is an online brokerage that enables investors to manage stocks, ETFs, and mutual funds as integrated investment portfolios called “Folios” that deliver better control, greater transparency, and lower cost. Investors can create their own Folios, much like creating personalized ETFs or mutual funds, or invest in over 100 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more. The Folio Unlimited Plan features unlimited commission-free trading in twice-daily windows for only $29 a month or $290 a year. Ready-to-Go Folios can be managed or unmanaged, are not registered investment companies, and are offered by FOLIOfn Investments, Inc., a registered broker-dealer. FOLIOfn Investments, Inc. does not provide investment, tax, or legal advice. FOLIOfn Investments, Inc., is a member of FINRA/SIPC.