<Li> $1.50 billion at 5.145% (lowest bid) </Li> <P> In this example the% at high is 66.66%, meaning only $3 billion of the $4.5 billion at 5.130% get bonds . Bids are filled from the lowest yield (highest price) until the process raises the entire $10 billion . This auction clears at a yield of 5.130%, and all bidders pay the same amount . In theory, this feature of the Dutch auction leads to more aggressive bidding, as those who (in this example) bid 5.115% receive the bonds at the higher yield (lower price) of 5.130% . </P> <P> A variation on the Dutch auction, OpenIPO, was developed by WR Hambrecht and has been used for 19 IPOs in the US . Auctions have been used for hundreds of IPOs in more than two dozen countries, but have not been popular with issuers and thus were replaced by other methods . One of the largest uniform price or "Dutch" auction IPOs was for Singapore Telecom in 1994 . The 1994 auction IPO of Japan Tobacco was substantially larger (with proceeds more than double those of Singapore Telecom and triple those of Google), but this auction was discriminatory or pay - what - you - bid, not uniform price or "Dutch". SRECTrade.com uses a two - sided Dutch auction to trade Solar Renewable Energy Credits (SRECs). </P> <P> The introduction of the Dutch auction share repurchase in 1981 gives firms an alternative to the fixed price tender offer when executing a tender offer share repurchase . The first firm to use the Dutch auction was Todd Shipyards . A Dutch auction offer specifies a price range within which the shares are purchased . Shareholders can choose to tender their stock at any price within the stated range . The firm compiles these responses, creating a supply curve for the stock . The purchase price is the lowest price that allows the firm to buy the number of shares sought in the offer, and the firm pays that price to all investors who tendered at or below that price . If the number of shares tendered exceeds the number sought, the company purchases less than all shares tendered at or below the purchase price pro rata to all who tendered at or below the purchase price . If too few shares are tendered, then the firm either cancels the offer (provided it had been made conditional on a minimum acceptance), or it buys back all tendered shares at the maximum price . </P>

Running the price clock in a dutch auction