Coinbase opens IPO allocations to US retail traders

Coinbase now lets eligible US retail traders request initial public offering allocations through its app, starting with smart-ring maker Oura, which targets a Nasdaq listing this month at a valuation of $14-plus billion.

The service is handled by Coinbase Capital Markets (CCM), a FINRA-registered broker-dealer. CCM acts as an agent, aggregating customer orders and routing them through Apex Clearing Corporation, rather than underwriting IPOs, holding securities inventory or taking the opposite side of customer trades, the company said Monday.

Customers will be able to request shares at the IPO offer price before trading begins, extending Coinbase’s services beyond secondary-market trading, it added.

The process allows customers to submit conditional offers after an expected price range is published, Coinbase noted. Final allocations depend on the number of shares available and total customer demand, and requests may be filled fully, partially or not at all. Shares received through the process will become tradable on Coinbase once the company begins public-market trading.

Coinbase said its allocation system would favor longer-term holders. Selling an allocated IPO share within the first 30 days may result in a 60-day ban from participating in future IPOs, while repeat early sellers may receive smaller or less frequent allocations.