Selected Dealers Agreement
(IPO)

Summary

This template selected dealers agreement may be used in connection with an initial public offering (IPO). The underwriting syndicate typically will invite dealers to participate in the IPO in order to effect a broader distribution of the securities or if the syndicate cannot find investors for all of the securities offered. This template includes practical guidance and drafting notes. The selected dealers agreement governs the rights and obligations of the dealers who are invited by the underwriting syndicate to participate in the offering. The dealers who are a party to this agreement may purchase securities from the underwriters at the IPO price less a discount that is a fraction of the discount given to the underwriters by the company. Dealers that sign the selected dealers agreement are not underwriters for purposes of the offering. The lead managing underwriter typically will provide the form of selected dealers agreement. For more information on the selected dealers agreement and...