Gemini Space Station, a cryptocurrency platform, has allocated nearly 30% of its IPO shares to retail investors, significantly higher than the traditional 6% allocation. This strategic move helped the stock close up 14% on its first trading day at $32, resulting in a market capitalization of approximately $3.8 billion. The approach aims to mitigate the common market trend where stock prices surge on the first day but fail to sustain.
This strategy follows a similar move by Bullish, another cryptocurrency exchange, which allocated 20% of its shares to retail investors during its IPO last month. Analysts suggest that increasing retail investor participation in IPOs is a rethinking of pricing strategies, as it helps avoid excessive first-day surges and potential missed financing opportunities for companies and early investors.
Gemini Allocates 30% of IPO to Retail Investors, Mitigating First-Day Surge Risks
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