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IPO Issuers and Underwriters covet retail investors who won’t flip, or immediately sell, their IPO shares. Investors that buy and hold shares have a positive impact on price performance, making the IPO more likely to succeed. Attracting buy and hold investors motivates Issuers and Underwriters to allocate IPO shares through ourselves.
Arch Investment ICAV makes it money from investing in the same positions as our clients and investors like you do not pay any fees apart from our backend commission of 2% when you exit.
Arch Investment ICAV reflects your order in an offering to the underwriter. The underwriter could allocate 100% of what we are asking for or they might not allocate any shares to Arch Investment ICAV. When an offering is oversubscribed, allocations tend to be much smaller. You could be filled on your entire order, part of your order, or you might not receive any shares at all.
All you pay for is the share price of the IPO. There is no commission on the front end, but when you sell out of your position we charge a 2% flat exit fee, there are no other additional commissions or fees charged.
Not all offerings are available to order. Please keep in mind that allocations are never guaranteed. If we expect to receive an allocation from the Underwriter in an offering we will make it available to order to our clients, sometimes we may expect an allocation a couple of weeks in advance and sometimes we may expect an allocation only a day before an offering goes effective (especially in popular/oversubscribed offerings). Sometimes we may receive large allocations, sometimes small allocations, or no allocation at all.
You could be allocated the entire dollar amount of your order, part of your order, or none of your order. Your allocation depends on how much interest/demand there is in a specific offering, and how much of the offering is allocated to Arch Investment ICAV.