Auction system and method for pricing and allocation during capital formation

• US 20040039685A1
• Filed: 08/04/2003
• Published: 02/26/2004
• Est. Priority Date: 06/15/1999
• Status: Active Grant

• Current Assignee: W.R. Hambrecht + Co., Inc. (WR Hambrecht + Co. LLC)
• Original Assignee: WR Hambrecht + Co. LLC
• Inventors: Hansson, Othar, Ocheret, Charles, Katz, Alan, Hambrecht, William R., Regan, Matt, Hayes, Jordan
• Granted Patent: US 7,587,358 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Techniques are provided for an auction system that is used for pricing and allocating equity securities. Information about an offering to accept bids for equity shares is provided to qualified potential purchasers and non-qualified potential purchasers. Bids from potential purchasers for equity shares are received through a communication network. Bids are accepted and offered to be accepted only from qualified potential purchasers. A non-qualified potential purchaser submits a bid through a qualified potential purchaser. A clearing priced for the offered shares is determined based on the received bids.

Claims

1. A method comprising:

offering to accept bids for equity shares in order to raise a prescribed amount of capital;

receiving bids from potential purchasers of the offered shares;

determining a clearing price for the offered shares based upon the received bids and the prescribed amount of capital; and

allocating shares to the prospective investors based upon the clearing price.