IPO Questions and Answers

BANQ® is Bringing Back the Small Cap IPO

Looking for answers? Below are some frequently asked questions.


Below are some frequently asked questions on our IPO process. If you have additional questions please feel free to email us at sales@tpglobal.com
BANQ® provides investors access to exciting companies with exposure to rapidly growing sectors and new technologies. BANQ® takes the entire public and private offering process digital and online, providing access to U.S. opportunities and offerings in the U.S. markets. BANQ® widely markets its offerings utilizing the new general solicitation and advertising rules promulgated by the U.S. Securities & Exchange Commission, in response to the passage of the JOBS Act of 2012 including Reg A+ and Reg D.

We treat Reg A+ like traditional IPOs. You are purchasing a security that is a new issue and in many cases will trade on the NYSE, NASDAQ or the OTC.

How do I participate in an IPO or Reg A Offering?

Initial Public Offering (IPO) shares have no trading history, are speculative, and are not suitable for all investors. You must determine if investing in an IPO is within your risk tolerance, and if it makes sense for your investment objectives. Before investing in an IPO, read the prospectus carefully so you can make an informed decision. Pay special attention to the risk factor section. We encourage you to review the Securities and Exchange Commission's (SEC) "Investing in an IPO" http://www.sec.gov/investor/alerts/ipo-investorbulletin.pdf bulletin for additional information on IPOs.

To participate in an IPO offered through BANQ® you will need to place an Indication of Interest (“IOI”). Since the demand for shares may be greater than the number of shares available, the number of shares you receive may be reduced during the allocation process. We may not be able to fill any of the IOI for a particular IPO, or we may fill only part of the IOI, it will be determined based on the demand for shares. No offer to buy the securities can be accepted and no part of the purchase price can be received until an offering statement on Form 1-A has been filed and until the offering statement is qualified pursuant to Regulation A of the Securities Act of 1933.

Once qualified you may hit the Invest Now button, place your order, open your account and subscribe to the offering.

Participating in an IPO means you must pay close attention to all emails from BANQ®. The process may require you to take action, especially around the time the offering is expected to be priced. The SEC will declare the Registration Statement effective on the expected pricing date or in the case with Regulation A, the offering will be qualified. This is where the final price is typically set by the underwriter depending on demand for the stock, general market conditions, and other factors. When that happens, you will be notified and may be required to sign in to your BANQ® account to take immediate action.

Read the Prospectus or Form 1-A

The Prospectus or Form 1-A is the offering document published by the issuing company. It explains all business aspects of a company including historical financial statements and results, the principal managers and their backgrounds, business strategy, risk factors, the company's financial statements, management background, legal problems, use of proceeds of the financing, insider holdings information and estimated date of issue, among others. A Form 1-A or Preliminary Prospectus is distributed before the Final Prospectus, which is published after the IPO has been cleared for sale by the SEC and the IPO has been priced by the underwriters or in the event of a Regulation A offering, until the offering statement is qualified pursuant to Regulation A of the Securities Act of 1933.

Read the Prospectus or Form 1-A

Risk of Investing in Initial Public Offerings ("IPOs")

There are specific risks in investing in an Initial Public Offering ("IPO") both Reg A and S-1 IPOs. Among other things, the stock has not been subject to market valuation. Those risks are described at length in the prospectus, and we urge you to read the prospectus carefully to understand those risks before investing. An IPO is the first sale of stock by a private company to the public and may not be suitable for all investors. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded. IPOs are a risky investment. For even experienced investors, it can be difficult to predict what the stock will do on its initial day of trading and in the near future because there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, which are subject to additional uncertainty regarding their future values.

Is there a charge for buying an IPO or placing an Indication of Interest (“IOI”)?

There is no charge or commission above the IPO price for an IOI, however in the event that you receive your allocation and wish to sell at a future date, standard commission rates for sales do apply.

I do not live in the US or I am not a US Citizen. Can I still invest?

Yes, we allow non US citizens to invest in offerings, however you must do so by using the Escrow Option when you subscribe to the Offering.

I have an account at another firm. Do I have to open a BANQ® account?

No, you do not need to open an account on BANQ®. You may subscribe for the offering using the Escrow Option and have your shares delivered directly to your broker. You will need to have your account number available as well as the DTC Participant number. Just ask your broker for that information.

How old do I have to be to invest?

An investor under 18 cannot invest themselves, however, a parent could invest in his/her name by setting up a UTMA or trust.

How old do I have to be to invest?

Placing an Indication of Interest (“IOI”)

If you decide to participate in an IPO, you will need to place an IOI through the Invest Now button. An IOI becomes a binding contract and will be automatically accepted two hours before the closing occurs and the shares are allocated. In the event you would like to cancel or change your IOI please email sales@tpglobal.com with you name and change.

What is an IPO?

An IPO is the first sale of stock by a private company to the public. IPOs on BANQ®are issued by growth companies seeking the capital to expand their operations. If an IPO is successful, the shares of the company will be publicly traded on an exchange like the NYSE, NASDAQ or OTC

Indication of Interest (“IOI”) Amount

After you decide how much money to put toward an IPO, you will enter a dollar amount for your IOI. You can invest any whole dollar amount, at or above the minimum. You can only purchase an amount of shares based upon the amount of cash that is available in your BANQ® account at the time of the Regulation A offering closing.

 When is my Indication of Interest (“IOI”) automatically accepted?  Two-Hours to Respond

When is my Indication of Interest (“IOI”) automatically accepted? Two-Hours to Respond

Your indication can only be accepted once the SEC declares the Form 1 -A qualified and when the Company and BANQ® determine a closing date. Once closing time is determined, the Two-Hour Confirmation window starts. The Two-Hour Confirmation window gives you a final opportunity to cancel your IOI, and in some cases, requires you to confirm your IOI. There are certain cases where no further action is required to confirm your IOI, which will become a binding contract.

Your IOI may be automatically confirmed at the end of the Two-Hour Confirmation window if the final IPO price is:

  1. within the initial estimated price range
  2. above the initial estimated price range by no more than 20%
  3. within the minimum amount to close range

The above is the Automatic Confirmation Range, which means your IOI will be accepted unless you choose to cancel that IOI during the Two-Hour Confirmation window (you may receive a final allocation less than the maximum amount you requested). When your order is accepted, you will receive an email notifying you of your purchase.

Is there a cutoff time for submitting a deposit while making an Indication of Interest (“IOI”)?

A funds transfer must be initiated 5 days before the end of the Two-Hour Confirmation Window on the day of closing to be eligible for an allocation.

Manage your Indication of Interest (“IOI”)

You will receive an email after placing your IOI. You will also receive an email notifying you of the timing of the IPO, if there is a material change in the Form 1-A or Prospectus or if there are any other important updates. In the event that there is a material change in the Form 1-A or Prospectus or the Offering, you will need to reconfirm your IOI. IOIs can be confirmed from the IPO Offers page.

What happens if an IPO is postponed or canceled?

An IPO can be postponed for many reasons, including negative developments in the general stock market. If an IPO or offering is postponed, BANQ ® will notify participants with IOIs by e-mail and you can have your funds returned to you.

STO or ICO

What happens if a company changes its Form 1-A or prospectus or makes other important announcements during the IPO process?

If a company issues an updated prospectus or wants you to see other communications during the IPO process, a notice will be sent to you via email and those filings can be accessed from the Form 1-A or Prospectus section of the IPO page.

Why didn’t I receive the amount that I originally requested during the IPO?

Some IPOs have high demand, which lessens the availability of shares to allocate. Our goal is to provide as many people as possible with at least some IPO stock, at the same price, and at the same time, as Wall Street, while ensuring everyone who invested through BANQ® receives at least a minimum amount, however in certain circumstances you may not receive any allocation. IPO allocations are not guaranteed. Our goal is to fairly distribute shares across all public participants. Our goal is to level the playing field.

If you did not receive an allocation, it may be for the following reasons:

  1. Not enough cash to cover the purchase
  2. Duplicate orders
  3. Multiple accounts: be sure to indicate for the correct account
  4. Fractional or incorrect amounts indicated

Please be sure to properly place your order.

STO or ICO

What is Qualification?

The SEC has qualified that offering statement, which is similar to being effective, which only means that the Issuer may make sales of the securities described by that offering statement. Investors, however, should understand that the SEC’s qualification of an offering statement does not mean that the SEC has assessed the accuracy of the offering statement or the merits of the securities offered.

When can I sell IPO shares?

Your IPO shares may be sold the first day they begin trading on the open stock market. You will need to log on to your BANQ® account to enter your orders. You are not responsible for any charge or commission for the purchase of the IPO or IOI, however in the event that you receive your allocation and wish to sell at a future date, standard commission rates for sales do apply.

How do I trade my shares?

You may trade your shares by logging into your account on www.banq.co and enter your trade either through your positions or by using the trade tab.

Please note that the does not support mobile trading at this time and a desktop must be used to enter and execute orders properly.

For additional questions contact us at sales@tpglobal.com

 How do I trade my shares?

About BANQ

Made in New York, BANQ® is a division of TriPoint Global Equities, LLC. Member FINRA | SIPC Check the background of this firm on FINRA’s Broker Check. Business Continuity Plan

Contact Details

917 512 0825
sales@tpglobal.com
1450 Broadway, 26th Floor New York, NY 10018

Contact us
BANQ.CO IS THE ONLINE DIVISION AND WEBSITE OPERATED BY TRIPOINT GLOBAL EQUITIES LLC, A REGISTERED BROKER/DEALER AND MEMBER FINRA/SIPC. ALL SECURITIES ARE OFFERED BY TRIPOINT GLOBAL EQUITIES. BY ACCESSING THIS SITE AND ANY PAGES THEREOF, YOU AGREE TO BE BOUND BY ITS TERMS OF USE AND PRIVACY POLICY. COMPANY LISTINGS ON THIS SITE ARE ONLY SUITABLE FOR INVESTORS WHO ARE FAMILIAR WITH AND WILLING TO ACCEPT THE HIGH RISK ASSOCIATED WITH HIS OR HER RISK INVESTMENTS. SECURITIES SOLD THROUGH PRIVATE PLACEMENTS ARE NOT PUBLICLY TRADED AND ARE INTENDED FOR INVESTORS WHO DO NOT HAVE A NEED FOR A LIQUID INVESTMENT. THERE CAN BE NO ASSURANCE THE COMPANY’S VALUATION IS ACCURATE OR IN AGREEMENT WITH THE MARKET OR INDUSTRY VALUATIONS. ADDITIONALLY, INVESTORS MAY RECEIVE RESTRICTED STOCK THAT MAY BE SUBJECT TO HOLDING PERIOD REQUIREMENTS. COMPANIES SEEKING PRIVATE PLACEMENT INVESTMENTS TEND TO BE IN AN EARLIER STAGE OF DEVELOPMENT AND HAVE NOT YET BEEN FULLY TESTED IN THE PUBLIC MARKETPLACE. INVESTING IN PRIVATE PLACEMENTS REQUIRES HIGH RISK TOLERANCE, LOW LIQUIDITY CONCERNS, AND LONG-TERM COMMITMENTS. INVESTORS MUST BE ABLE TO AFFORD TO LOSE THEIR ENTIRE INVESTMENT. IN ADDITION, REGULATION A OFFERINGS WILL BE MADE ONLY BY MEANS OF AN OFFERING STATEMENT ON FORM 1-A WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION ONCE QUALIFIED. NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED IN CONNECTION WITH THE INFORMATION PROVIDED, AND, IF SENT IN RESPONSE, WILL NOT BE ACCEPTED. NO OFFER TO BUY SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL AN OFFERING STATEMENT ON FORM 1-A HAS BEEN FILED AND UNTIL THE OFFERING STATEMENT IS QUALIFIED PURSUANT TO REGULATION A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ITS ACCEPTANCE IS GIVEN AFTER THE QUALIFICATION DATE. THE SECURITIES OFFERED USING REGULATION A ARE HIGHLY SPECULATIVE AND INVOLVE SIGNIFICANT RISKS. THE INVESTMENT IS SUITABLE ONLY FOR PERSONS WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. FURTHERMORE, INVESTORS MUST UNDERSTAND THAT SUCH INVESTMENT COULD BE ILLIQUID FOR AN INDEFINITE PERIOD OF TIME. NO PUBLIC MARKET CURRENTLY EXISTS FOR THE SECURITIES, AND IF A PUBLIC MARKET DEVELOPS FOLLOWING THE OFFERING, IT MAY NOT CONTINUE. SOME ISSUERS MAY INTEND TO LIST ITS SECURITIES ON A NATIONAL EXCHANGE AND DOING SO ENTAILS SIGNIFICANT ONGOING CORPORATE OBLIGATIONS INCLUDING, BUT NOT LIMITED TO, DISCLOSURE, FILING AND NOTIFICATION REQUIREMENTS, AS WELL COMPLIANCE WITH APPLICABLE CONTINUED QUANTITATIVE AND QUALITATIVE LISTING STANDARDS.


Copyright © TriPoint Global Equities, LLC.