“When shares of Andover.Net more than tripled on their first day
of trading last week, institutional investors and company employees
weren’t the only winners.”
“Under a unique method for launching initial public
offerings, individual investors also were able to obtain shares at
the offering price of $18 and watch them surge to more than $63
within a day.“
“For underwriter WR Hambrecht, Andover.Net’s success seemed to
redeem a novel approach to allocating coveted IPO shares. Two
previous efforts had been far less spectacular. However, at least
one institutional investor who missed out on the run-up believes
the process was flawed.”