Author Topic: Got My Dad and Grandpa Into the Affirm Holdings IPO  (Read 884 times)

hodedofome

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Got My Dad and Grandpa Into the Affirm Holdings IPO
« on: January 12, 2021, 01:57:42 PM »
I can't get IPOs in my Interactive Brokers account. And I don't have millions of dollars with Goldman Sachs or Morgan Stanley. But apparently if you have at least $500k with Fidelity, you can get IPOs with them. I have a few Fidelity accounts, but most of my money is not with them.

My dad and grandpa have been following my picks for a year or two now (mostly SAAS stocks, with a few other tech stocks thrown in). They have a good bit of money in their Fidelity accounts. I know about Affirm through buying my wife's iPhone and Peloton from it (don't worry, I don't go into debt because I can't afford it, they just offered me 0% interest so why not). It was a very quick, seamless, painless process to get 0% financing for an online purchase. I like the product a lot, and most debt loving Americans will love it even more.

I did my due diligence, they are growing quickly and the Afterpay foreign competitor stock has done really well the past few years. I expect this IPO to be pretty hot, in a hot IPO market, and anyone getting in at the IPO price I would expect to do well.

My dad got approved for $80k worth, grandpa put in for $100k and was approved as well. They get assigned tonight as long as they do everything correctly, so let's see how it turns out when Affirm starts trading for the retail crowd tomorrow.

IPO pricing was in the mid $30s, now it seems mid $40s, and I'd be surprised if it starts trading less than $60-80 tomorrow.

Risk is Affirm pulled their IPO in December after the AirBNB IPO popped like crazy. Perhaps they got greedy and wanted to re-price their IPO at nosebleed levels.

Let's see how it turns out.
« Last Edit: January 12, 2021, 02:02:37 PM by hodedofome »

helloyou

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Re: Got My Dad and Grandpa Into the Affirm Holdings IPO
« Reply #1 on: January 12, 2021, 02:25:07 PM »
I'm with interactive brokers as well. So to get IPO with them you need at least $1M in your account?

It's a pretty big requirement!

hodedofome

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Re: Got My Dad and Grandpa Into the Affirm Holdings IPO
« Reply #2 on: January 12, 2021, 02:30:45 PM »
I'm with interactive brokers as well. So to get IPO with them you need at least $1M in your account?

It's a pretty big requirement!

It doesn't matter how much you have with IB, they just don't do IPOs. Fidelity does however.

The millions of dollars comment was regarding other brokerages. Usually you have to be a pretty fat cat to get in on an IPO.

helloyou

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Re: Got My Dad and Grandpa Into the Affirm Holdings IPO
« Reply #3 on: January 12, 2021, 03:07:13 PM »
Ah ok. Somehow I had some hope lol

ChpBstrd

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Re: Got My Dad and Grandpa Into the Affirm Holdings IPO
« Reply #4 on: January 13, 2021, 08:19:30 AM »

IPO pricing was in the mid $30s, now it seems mid $40s, and I'd be surprised if it starts trading less than $60-80 tomorrow.

Risk is Affirm pulled their IPO in December after the AirBNB IPO popped like crazy. Perhaps they got greedy and wanted to re-price their IPO at nosebleed levels.

They just decided to charge you $49/share. How does an IPO purchase agreement work? You give them a blank check and say buy all the shares this amount of money can purchase for whatever price they want? Can you set a sale order for the same day?

hodedofome

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Re: Got My Dad and Grandpa Into the Affirm Holdings IPO
« Reply #5 on: January 13, 2021, 08:50:19 AM »
Update, looks like you can't get Affirm through Fidelity after all:

Issuer:  Affirm Holdings, Inc.

Offering:  Affirm Holdings, Inc. Class A Common Stock IPO

The registration statement for Affirm Holdings, Inc. Class A Common Stock IPO WILL NOT be declared effective and the offering priced this evening, 01/12/2021.  Therefore Personal Investments (PI) has withdrawn from the Affirm Holdings, Inc. Class A Common Stock IPO offering for the following reasons:

PI is required by the SEC to obtain confirmations on indications of interest after effectiveness but before secondary market trading in Affirm Holdings, Inc. Class A Common Stock IPO begins.  The Affirm Holdings, Inc. Class A Common Stock IPO offering is NOW expected to be declared effective tomorrow morning, 01/13/2021 and trading in the secondary market will begin immediately afterwards.  As a result, there would be insufficient amount of time for PI to obtain customer confirmations and complete the allocation process prior to the security's trading in the secondary market.  Therefore, PI has withdrawn from the Affirm Holdings, Inc. Class A Common Stock IPO offering.

Fidelity Brokerage Services LLC Member NYSE SIPC.

hodedofome

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Re: Got My Dad and Grandpa Into the Affirm Holdings IPO
« Reply #6 on: January 13, 2021, 08:52:42 AM »

IPO pricing was in the mid $30s, now it seems mid $40s, and I'd be surprised if it starts trading less than $60-80 tomorrow.

Risk is Affirm pulled their IPO in December after the AirBNB IPO popped like crazy. Perhaps they got greedy and wanted to re-price their IPO at nosebleed levels.

They just decided to charge you $49/share. How does an IPO purchase agreement work? You give them a blank check and say buy all the shares this amount of money can purchase for whatever price they want? Can you set a sale order for the same day?

No, they give you a price range ($35-38 for example) and ask how many shares you want. You tell them. They come back to you the night before and confirm a specific price ($39 for example). You confirm the price,  you get allocated the shares, then hopefully when it starts trading it's 50-100% above that, lol.

In the end though you may only get a few shares even though you requested 1,000.

hodedofome

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Re: Got My Dad and Grandpa Into the Affirm Holdings IPO
« Reply #7 on: January 13, 2021, 11:36:10 AM »
Looks like they both missed out on $100k each in profits on the ipo today. Dad is bummed, grandpa wants someone fired, lol.

It wasn’t Fidelity’s fault, Affirm is the one who pulled it from Fidelity.

GreenEggs

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Re: Got My Dad and Grandpa Into the Affirm Holdings IPO
« Reply #8 on: January 21, 2021, 09:05:10 PM »
I'm glad you started this thread.  I'd often wondered about IPOs, but never thought to ask or look into them.  Now that you've brought it up it gives me some understanding work from. 


I've noticed large initial purchases listed here: [size=78%]https://www.insider-monitor.com/insider_stock_purchases.html[/size] for $X and then the price jumps to $X1.5 or more.  I realized that they were IPO purchase, but never thought much about how to get in on them. 


I wonder if there are rules about holding IPO shares for a minimum amount of time?