Take a position on a company before the Initial Public Offering (IPO)
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Options and turbo warrants are complex financial instruments. Trading these financial instruments involves the high risk of losing money rapidly.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Options and turbo warrants are complex financial instruments. Trading these financial instruments involves the high risk of losing money rapidly.
IPOs
Key benefits
-
Trade on our grey market before the IPO
Use our grey markets to take a position on a company's anticipated value
-
React to the latest news
Take advantage of speculation on the price, and any potential volatility
-
Go long or short
Back your judgement if you feel a company’s anticipated value has been overestimated
-
A superior trading platform
Plus mobile and tablet apps to help you react faster, wherever you are
-
Trade after the IPO
Use spread bets or CFDs to trade on the company's shares from the first day of conditional trading
-
The trading partner you can trust
We’re a secure and financially strong FTSE 250 company
What is an IPO?
An initial public offering is the first time a company offers its stock for sale to the public. Following an IPO, the company ceases to be a private enterprise – it becomes publically listed and its shares are traded on a stock exchange.
We offer a market on a company's anticipated value during the build up to its IPO, so you can trade on a grey market before the shares are released.
When trading around an IPO it’s important to do your research and keep up-to-speed with breaking news. Remember IPO markets can be particularly volatile, so you should be careful to manage your exposure.
Learn more about spread betting and CFDs and their potential risks
Example IPO: Alibaba
Chinese e-commerce company Alibaba held its IPO in September 2014, raising a massive $230 billion. This made it the largest technology listing in US history, exceeding the estimate of $168 billion and also previous record-breaking IPOs, such as Facebook in May 2012.
There was lots of speculation surrounding the IPO, and we provided a grey market for IG clients to take a position – our video from September 2014 explains the interest that surrounded Alibaba’s IPO, and an example of how to trade a grey market using our platform.
IPOs FAQs
Why do companies hold IPOs?
Primarily, companies hold IPOs to generate capital. By floating a company on a stock market, the management allow investors to buy shares and are able to raise capital to put back into the company.
Appearing on a major exchange can also boost the company’s reputation – it shows the company is regulated, of a reasonable size, and that investors have faith in its future.
Can I trade IG's grey market on IPOs from my mobile?
Yes – you can trade over 17,000 markets, including our grey markets, from our mobile and tablet apps. Find out more about our trading platforms.
How can I take position after the IPO?
Following an IPO, you can trade a company’s shares just like you would any other listed company.
Where can I find out about upcoming IPOs?
When you create an account and become an IG client, you’ll be able to view the upcoming IPOs in our trading platform – the Alibaba video above shows how to find them.
