Overview
- U.S. retail customers can now access IPO shares via the Coinbase app.
- Oura, known for its smart rings, will be the first company available for purchase.
- Quickly selling allocated shares may limit access to future offerings.
Coinbase is expanding its services to retail investors by providing access to initial public offering (IPO) shares as part of its growing array of traditional investment options. This new feature will be available to eligible U.S. customers starting this week, coinciding with the anticipated Nasdaq listing of smart-ring manufacturer Oura.
As stated in a Monday announcement, eligible U.S. users can request shares of Oura at the IPO price through the Coinbase app prior to the start of public trading this week.
Myriad: Predict upcoming IPOs Make your prediction here.“This new feature represents another milestone in our journey to create the Everything Exchange, allowing our U.S. customers early access to high-demand companies before they enter public markets,” the company mentioned in its statement.
While Coinbase has not disclosed the rationale for choosing Oura as the initial offering, the smart-ring company is preparing for its Nasdaq debut under the ticker symbol “OURA,” with plans to issue 50 million shares priced between $40 and $44 each.
To take part in this offering, Coinbase advises customers to select an IPO from the app, fund their accounts, and submit a “Conditional Offer to Buy” once the expected price range is announced. Customers must also complete a standard FINRA questionnaire to determine eligibility.
It's important to note that placing an order does not guarantee share allocation. Requests may be fully filled, partially filled, or rejected based on demand and the number of shares provided by underwriters.
Customers have the option to modify or cancel their requests while the order book is open. Shares that are allocated will be priced at the final IPO price and can be traded once public trading commences.
According to Coinbase, its allocation system favors investors who retain their shares. "Our allocation algorithm prioritizes investors who believe in what they’re purchasing for the long haul," the company stated. "Selling IPO shares within the first 30 days may lead to a temporary ban from participating in future IPOs for 60 days, and those who frequently sell will receive smaller allocations compared to those who hold their shares longer."
Coinbase also emphasized that its securities operations are distinct from the digital asset services provided by Coinbase Inc.
This IPO initiative is part of Coinbase's broader strategy to diversify beyond cryptocurrency trading. Recently, the company filed to offer U.S. perpetual futures related to stocks like Apple, Tesla, and Nvidia, which would provide exposure to price movements rather than actual ownership.
Additionally, Coinbase has launched tokenized stocks for eligible international users, received approval to offer stocks and derivatives in the UK, and outlined plans to introduce a combination of stocks, crypto, and prediction markets to Canadian customers. Collectively, these initiatives are part of Coinbase’s vision to become the “Everything Exchange.”