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Invest in the primary market: access IPOs, and share issues and placings
Invest in the primary market: access IPOs, and share issues and placings

Invest in the primary market: access IPOs, and share issues and placings

Access stocks via the primary market – before they’re publicly available by subscribing to IPOs ahead of time, or buy in on exclusive share issues and placings, using a share dealing account with us.

Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening an account.

Contact us 0800 195 3100

Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.

Visit help and support for more information.

Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.

Visit help and support for more information.

Call 0800 409 6789 or email helpdesk.uk@ig.com if you have any questions about trading or investing. We're available 24/7 between 8am Saturday and 10pm Friday.

Contact us 0800 409 6789

Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening an account.

Contact us 0800 195 3100

Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.

Visit help and support for more information.

Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.

Visit help and support for more information.

Call 0800 409 6789 or email helpdesk.uk@ig.com if you have any questions about trading or investing. We're available 24/7 between 8am Saturday and 10pm Friday.

Contact us 0800 409 6789

Remember: the value of investments can go up or down. You could get back less than you invest.

What can you access through the primary market?

Initial public offering (IPO) subscriptions

Take your position at the same time and price as institutional investors

Follow-ons: share issues and placings, and more

Get discounts on key stocks when companies issue shares via equity placings1

How do I invest in the primary market?

  1. Learn about IPOs and share placings
  2. Create a share dealing account with us
  3. Open an account with PrimaryBid and link it to your account with us by providing your share dealing account ID
  4. Place your order

Watch the below video to learn more about investing in the primary market

Video poster image

How to invest in IPO
subscriptions (primary issue)

  1. Open a share dealing account with us
  2. Open an account with our partner, PrimaryBid, and link it to your account with us by providing your share dealing account ID
  3. Research upcoming IPOs and keep an eye out for new listings on PrimaryBid
  4. Place your order on PrimaryBid
  5. The stock will reflect in your share dealing account automatically

How to invest in follow-ons: share issues and placings (secondary issue)

  1. Open a share dealing account with us
  2. Open an account with our partner, PrimaryBid, and link it to your account with us by providing your share dealing account ID
  3. Look out for follow-ons
    on PrimaryBid
  4. Place your deal on PrimaryBid
  5. The shares will appear in your share dealing account automatically

Get exclusive access to leading stocks

Below are some of the leading names we’ve offered for IPO subscriptions and share issues.

Leading stocks

Your IPOs and follow-ons glossary

Below are a few key terms to bear in mind when participating in IPOs and follow-ons.

  • Initial public offering (IPO): the process of a company listing its shares on a stock exchange for the first time. You can invest in IPOs at the same time and price as institutional investors
  • Follow-on: post-IPO stock issuance, through new or existing shares, by a company looking to raise more capital
  1. Preemptive follow-ons: shares are offered to existing shareholders based on the number of shares already held, and the right to participate is guaranteed
    - Rights issues and open offers: types of pre-emptive follow-ons that require a prospectus and, possibly, additional approval by shareholders – these are costly to the issuer, but can also raise large amounts of capital​​
  • Non-preemptive follow-ons: not linked to the existing holdings and are available to all investors
  1. Share placing: a type of non-preemptive follow-on that’s limited in size, but the process is quicker and the cost to the issuer is lower

Pay no stamp duty

Stamp duty reserve tax (SDRT) generally doesn’t apply to transactions in the primary market, and AIM-listed shares or bonds traded in the secondary market have been exempt from SDRT since 2014.

FAQs

Where can I find my share dealing account ID?

You can find your share dealing account ID by logging into MyIG and selecting the ‘live accounts’ tab. Depending on how many accounts you have with us, you may need to change the one you’ve got open as you won’t be able to supply an ISA, SIPP or leveraged number to open a PrimaryBid account. You should see your share dealing account ID on the left-hand-side panel.

What is an IPO and how does it work?

An initial public offering (IPO) is the process of a company listing its shares on a stock exchange for the first time. It’s the first opportunity for non-private investors to buy the company’s shares in what’s known as the primary market – a transaction between the original holder (the company) and an investor.

An underwriter – usually a bank – helps the company decide how many shares it wants to issue and at what price, and carries out the book building process, ie looking for investors to subscribe to the IPO. Any interested parties will receive a prospectus of information about the shares, where they’ll be listed as well as the potential opening price.

Previously for retail investors, there have been restrictions on IPOs that mean they can only participate fully in the secondary market – when shares are exchanged between investors. However, you can now invest in initial public offerings at the same time and price as institutional investors, thanks to our partnership with PrimaryBid.

Once the issue has been listed, the secondary market begins and share prices are governed by market forces, rather than the company’s prospectus. At this point, you can invest in shares directly through your share dealing account.

What is a share placing and how does it work?

A share placing, or equity placing, is commonly used by companies – both public and private – to raise additional capital. They issue shares directly to the most suitable buyers – this doesn’t necessarily have to be existing shareholders.

Shares are offered to individuals, usually at a lower price than the current market level to encourage investment. The size of the discount would vary depending on how many shares are on offer. Equity placings are often offered directly to institutional investors rather than retail clients. However, our partnership with PrimaryBid enables you to invest in follow-on offerings.

What is an IPO subscription and how does it work?

An IPO subscription is an indication that you’re interested in buying shares once they’ve been listed. Subscription rates can have a direct impact on the initial share price. IPOs are often underpriced to ensure that the issue is fully subscribed or even oversubscribed by investors.

  • Oversubscription means there’s more demand than the number of securities issued – the prices can be adjusted upwards, and you could be allocated fewer shares than you requested
  • Undersubscription means that the supply of securities isn’t fully met by the demand, often because the security is overpriced

Are IPOs and share placings available at a discount?

Whether an IPO is priced at a discount depends on how well it goes on to perform in the secondary market.

If the shares trade at a premium to the IPO price, then participating will have offered a good value investment and typically means it was priced correctly. However, if the shares go on to trade at a discount – despite the price support given by the underwriter – it usually means that the IPO was mispriced, probably because demand was overestimated.

Share placings are usually offered at a discount or at the previous closing price to encourage investment.

When you invest in IPOs and share placings with us, you’ll get the best price available – plus, you won’t be charged a commission for IPO and placings positions with our partner PrimaryBid.

How do IPOs and share placings affect existing shareholders?

An IPO is usually a means for the shareholders of a private company, usually the founder or a private equity firm, to raise capital for the business. But it’s sometimes the case that these shareholders are selling down their stakes to realise funds, as opposed to – or in addition to – raising capital for the business.

Placings can dilute the shareholdings of existing investors because it increases the number of shareholders. This means that profits will be split among more people. This is why preemption rights exist – to give existing shareholders the chance to refuse the issue of new shares. However, not all placings incur dilution, so it’s important to do your research.

Why do companies choose to issue new shares?

Companies issue new shares to raise more money for the business. Broadening the investors that can participate in IPOs and other new issues means that companies will have a deeper pool of capital that they can tap into.

What is PrimaryBid?

PrimaryBid is an investment platform that connects companies with retail investors. This gives everyday investors equal opportunities to participate in primary and secondary offerings that have typically been restricted to institutional investors.

How do you access PrimaryBid with us?

  1. Open a share dealing account with us
  2. Head over to PrimaryBid and create an account
  3. See which issues and IPOs are available
  4. Place your order through PrimaryBid
  5. Enter your share dealing account ID to receive shares directly into your portfolio

You’ll find your share dealing account ID on our platform, under the live accounts tab.

  1. Open a share dealing account with us
  2. Head over to PrimaryBid and create an account
  3. See which issues and IPOs are available
  4. Place your order through PrimaryBid
  5. Enter your share dealing account ID to receive shares directly into your portfolio

You’ll find your share dealing account ID on our platform, under the live accounts tab.

1

Shares are offered to individuals, usually at a lower price than the current market level to encourage investment. The size of the discount would vary depending on how many shares are on offer.