Allocation: Retail vs Institutional Demand
Chapters in this video
What this video covers
- How retail demand flows through free retention while institutional demand concentrates in the pot, and why the bookrunner holds all allocation power
- Why quality of account analysis (mandate fit, prior initial public offering or IPO support, trading history) overrides raw indication of interest or IOI size every time
- What a fixed pot is: a predetermined selling-concession schedule that removes buyer leverage and makes economics predictable at deal launch
- What a jump-ball pot is: an institutional pot where the buyer designates which syndicate member receives the selling-concession credit, giving accounts leverage over coverage quality
- How free retention lets a syndicate member carve out shares for its own desk and keep the full selling concession outside the pot
- How designations let institutional buyers route credit inside the pot to reward specific syndicate members without changing allocation size
- Why verification of customer order accuracy and branch office manager confirmations must both complete before the allocation locks, not after
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