I recently subscribed to an IPO for ~2.1M shares and my cash balance was debited $100/share (~$210M total). I ended up getting allocated ~350k shares at $200/share (~$70M total). I expected to be refunded the difference but instead it still sits on my balance sheet as a ~$140M security deposit. Is this a bug or will the cash eventually be returned (perhaps during my weekly closing)? Thanks!
You will not receive any refund. You spent 2,1 mio AS$ on the IPO. If e.g. only 50% of the stocks are bought by investors you will receive shares in worth of 4,2 mio AS$ for your investment. If exactly 100% are bought, the stock price will be exactly 100 AS$ and you own shares with a value of 2,1 mio AS$. If between 100% and 200% of the offered stocks are sold the price for each share equals the signed amount of stocks, e.g. 160% are signed, the price per stock 160AS$ and the next day drops to about 100 AS$ again. So your value in that example lost some percent that need to be regained by the companies profit with time. If more than 200% of the stocks are signed the price stays at 200AS$ and the amount of stocks each investor receives will be reduced equally to their invested money.
In this case the interest in the IPO was way higher than the amount of stocks offered, so you invested 2,1 mio AS$ but only received stocks with a value of way less. To still make it a good deal you need to trust in the company performance so that you will earn dividends and have the option of selling your stocks at a way higher price than you bought them for if you want that. As you normally only invest in companies which business concept you believe to be well profitable it is just a matter of time until you earn money. Check your portfolio for further informations.
Yes, you should have been refunded the difference between the stock*200 and the money that was initially deposited for IPO. Probably you should contact support. And the refund should have come immediately after the IPO closed.
This has nothing to do with OP’s question/issue.
Sorry, misunderstood the question.
Update: I did get the cash back at weekly closing. It showed up as “Blocked funds correction entry” in my bank account log.