BestVest Investments, Ltd. is a participant in the OpenIPO network, featuring Initial Public Offerings from WR Hambrecht & Co. OpenIPO is a different way to distribute Initial Public Offerings that gives the smallest investor the same chance of getting shares as the largest financial institution.

OpenIPO: How it works

OpenIPO is a new way to take companies public that opens up access to IPOs. Based on a Dutch auction system designed by Nobel Prize-winning economist William Vickrey, OpenIPO uses a mathematical model that treats a bid from an individual the same as a bid from a large institution. This means OpenIPO offering prices are set by the market. The result is a price that reflects what people are truly willing to pay for the stock and the likely allocation of shares to long-term investors rather than speculators.

As in a typical auction, the highest bidders win. But there are two important differences. In the OpenIPO auction, bidding is completely secret, and winning bidders all pay the same price—the amount of the lowest bid at which the deal can be completed.

Access the sample auction which illustrates how it works.

OpenIPO: Potential Benefits

"OpenIPO was created to balance the interests of companies and investors."

          --Bill Hambrecht, Chairman & CEO, WR Hambrecht + Co

Investors get: A level playing field -- With OpenIPO, all investors have an opportunity to participate in IPOs. Equal access -- Investors, whether institutions or individuals, have equal access to IPO shares. Fair allocation -- IPO shares are allocated in an even-handed way by an auction system rather than preferentially by investment bankers and brokers. More flexibility -- Investors can bid any number of shares at any price they feel represents fair market value for the company. Equal treatment -- All investors pay the same price and never more than they bid.

Companies get: Better allocation -- The issued stock will more likely be purchased by investors who want to hold the shares, not 'flippers' who sell for a quick profit. Lower costs -- By leveraging technology, WR Hambrecht + Co attempts to reduce expenses for the issuing company, including underwriting commissions, printing, legal and out-of-pocket costs. Less dilution -- Deal size is driven by the economics of the issuing company, not the cost structure of the underwriting investment bank. Better pricing -- OpenIPO lets the market set the IPO price, eliminating the discounts demanded by traditional investment banks.