When you request IPO shares on Public, you’re placing a Conditional Offer to Buy (COB). A COB commits you to purchase up to the number of shares you requested in your COB, at a per share price no greater than the maximum price shown when you submitted your COB.
When you place your COB, you will see an estimated price range per share. The IPO underwriter and company going public set this estimate to give investors a general idea of the final IPO price. The max price that you see when placing your COB is the top price of this estimated range plus 20%. This is because COB orders are valid as long as the final issuance price, or the price at which shares are sold in the IPO, is not higher (or lower) than 20% of the maximum (or minimum) estimated price, and there have been no material changes to the prospectus.
Receiving your requested allocation of IPO shares is not guaranteed. Allocations depend on demand, and Public receives a limited number of shares for each offering. As a result, you may receive fewer shares than requested or no shares.
If you are allocated shares, you will receive those shares and cash will be removed from your account to cover the cost of those shares. The price you pay will be based on the final issuance price, which may be lower than or up to the maximum price when you submitted your COB.