IPO University
Friends and Family
IPO shares set aside by underwriters to be allocated, at the behest of the issuer, to individuals and entities which have a close working or familial relationship with the issuer. These shares – often up to 5% of the deal – are sold at the IPO price. Examples include: directors, officers, suppliers, top customers, consultants, employee relatives, etc. This is typically defined in the prospectus as a Directed Share Program.
