There are 2 major ways to invest or buy shares during IPO.
1. 1st is from your brokers allocations. This is done when a broker receives a certain number of shares to be distributed among its customers.
My Broker received 1,000,000 shares.
They usually have a system on who receives this allocation. It can be first come first served or it can be raffled on who gets an allocation.
With this process there is a possibility that you won’t get any allocation. So what is your next step.
2. LSI or Local Small Investors: What is LSI? LSI is a program of SEC to allow small investors to participate in an IPO. The advantage of LSI is it has a cap of Php 25,000 per investors. This is good because everybody is given the same maximum allocation thus allowing you the chance to avail of an allocation. The downside is you are only limited to Php 25,000 worth of allocation.