Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

BrewDog IPO

Discover how to get exposure to BrewDog – before and after its initial public offering (IPO) – with the world’s No.1 spread betting and CFD trading provider.1

Start trading today. Call 0800 195 3100 or email newaccountenquiries.uk@ig.com. We’re available from 8am to 6pm (UK time), Monday to Friday.

Contact us: 0800 195 3100

Start trading today. Call 0800 195 3100 or email newaccountenquiries.uk@ig.com. We’re available from 8am to 6pm (UK time), Monday to Friday.

Contact us: 0800 195 3100

Why trade BrewDog's IPO with us?

Stay ahead of the market

Trade or invest before the BrewDog IPO on our exclusive grey market, if offered, or the primary market2

Buy BrewDog stock

Take ownership of BrewDog stock from £3 commission with a share dealing account or tax-efficient ISA3,4

Speculate on BrewDog

Open a position on the future price of BrewDog shares using spread bets and CFDs

How to trade the BrewDog IPO

Grey market

Take your position on a range of grey markets, exclusively with us. If a grey market is available for BrewDog, you can speculate on whether the stock price will be higher or lower than its predicted market cap at the end of its first trading day. You’d:

  • ‘Buy’ (go long) if you think the market cap will be higher
  • ‘Sell’ (go short) if you think the market cap will be lower

After the listing

Get exposure to BrewDog shares with us by:

IPO subscription

To invest in a company’s stock, you could subscribe to the IPO ahead of the offering, thanks to our partnership with PrimaryBid.5 By registering your interest with us and PrimaryBid, you’ll receive a stock allocation at the same time and price as institutional investors (if BrewDog chooses to offer its shares to retail investors too).

Trading vs investing in BrewDog shares

Trading vs investing in BrewDog shares

When trading BrewDog shares with us, you can speculate on the underlying market price with spread bets and CFDs. You won’t take ownership of the shares, so you can speculate on both rising and falling prices, and get certain tax benefits.4

Spread bets and CFDs are leveraged derivatives. So, you’ll only need a small deposit – known as margin – to get full market exposure. Trading with leverage can magnify your profits, but it can also magnify your losses. So, you can lose more than your initial outlay.

Discover how you can manage your risk

When investing in shares with us, you’ll use a share dealing account to buy and sell the underlying stock. Because you’ll own the BrewDog shares, you’ll make a profit if you sell when the share price has risen beyond what you paid per share. As a shareholder, you’d have voting rights and be entitled to any dividend payments that are made. If you sell your shares at a lower price, you’d incur a loss, but you’ll never lose more than your initial outlay (excluding additional fees).

To open a share dealing position, you’ll need to put down the full value of your investment.

Open a share trading account in minutes

Open a share trading account in minutes

Fast execution on a huge range of markets

Enjoy flexible access to more than 17,000 global markets, with reliable execution

Deal seamlessly, wherever you are

Trade on the move with our natively designed, award-winning trading app

Feel secure with a trusted provider

With 45 years of experience, we’re proud to offer a truly market-leading service

Open a share trading account in minutes

Open a share trading account in minutes

Fast execution on a huge range of markets

Enjoy flexible access to more than 17,000 global markets, with reliable execution

Deal seamlessly, wherever you are

Trade on the move with our natively designed, award-winning trading app

Feel secure with a trusted provider

With 45 years of experience, we’re proud to offer a truly market-leading service

Start trading now

Log in to your account now to access today’s opportunity in a huge range of markets.

Start trading now

Log in to your account now to access today’s opportunity in a huge range of markets.

Our analysis on the BrewDog IPO

By Chris Beauchamp

BrewDog’s IPO remains hotly-anticipated for the brewer’s army of fans worldwide. The company is small in comparison to titans such as Anheuser-Busch and Heineken, but it has caught the imagination of beer drinkers who have sought a change from mass-produced beers and lagers.

An IPO would represent the next stage for the group, which has come from a tiny operation in Scotland, and has now exhausted the crowdfunding route that proved so vital in its early years.

One valuation estimate pointed to BrewDog being worth around $2 billion, compared to $95 billion for Anheuser-Busch. But the company has big ambitions, and having expanded beyond beer alone now looks to join the ranks of globally-listed drinks producers.

Having seen spectacular growth since its founding, the firm faces a more uncertain future. The global pandemic will hurt economic growth and consumer spending, which may mean future growth is harder to come by. It also operates in a highly-competitive space, with plenty of other small brewers jostling for sales. BrewDog’s IPO will help enliven global stock markets, but it will remain a small player in a very big marketplace.

When could the BrewDog IPO happen?

BrewDog is planning to list on the London Stock Exchange (LSE), with its IPO managed by Rothschild. While it’s said to have been aiming to go public in 2021, this will likely depend on market conditions, including the impact of the pandemic.

What is BrewDog’s business model?

BrewDog is a brewing company with a bar chain and hotel chain. It was founded by two Scotsmen in 2007. The company rebelled against the typical business model, and instead built its brand on ‘punk’ culture – performing stunts such as projecting themselves onto the Houses of Parliament and hosting rock and roll annual general meetings (AGMs).

BrewDog has raised a lot of its capital through a crowdfunding program known as ‘Equity for Punks’, which now has over 200,000 global participants. Between this and private equity rounds, the company has raised around £100 million since 2009.

How has BrewDog been performing?

Since its creation in 2007, BrewDog has expanded rapidly – it has nearly 100 bars and over 2000 employees worldwide.

However, like other hospitality businesses, BrewDog suffered during the coronavirus crisis – losing £8 million in the first half of 2020. But the wholesale and ecommerce arms continued to bring in capital. Despite this, the company has 25 new locations under construction around the world.

What was BrewDog last valued at?

BrewDog was valued at about $2 billion at the start of 2020 following 2019 revenues of $300 million.

In 2008, BrewDog applied to be on popular investment show Dragon’s Den, to offer the Dragons a 20% stake for £100,000. Had they not been rejected, this stake would be worth £360 million in 2020.

What could the BrewDog share price be?

For current investors in Equity for Punk, one share costs £25. While it’s unknown what the IPO price will be, this could act as a guide.

Who are BrewDog’s competitors?

BrewDog is often compared to beverage industry giants such as Anheuser-Busch and Heineken. The most recent valuation of BrewDog was $2 billion, compared to $95 billion for Anheuser-Busch.

However, BrewDog’s main competitors are Reed’s, Inc, Meantime Brewing Company, Aspall and Harpoon Brewery – all of whom are craft brewers with global operations. BrewDog is the frontrunner of the group, as its valuation of $2 billion is far above the next known valuation, which is Reed’s, Inc at £58 million.

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FAQs

How do IPOs work?

An IPO occurs when a company decides to start selling its shares to the public. Most companies list shares to raise capital to fund expansion, pay debts, attract and retain talent, or monetise assets.

First, an audit must be conducted – considering all aspects of the company’s financials. Then, the business must prepare a registration statement to file with the appropriate exchange commission. If approved, the company will list a defined number of shares at a price set by an investment bank. The shares will be available for sale through the chosen stock exchange.

Learn more about how IPOs work

What are grey markets and how do they work?

Grey markets enable traders to get exposure to a company before it lists on a stock exchange. When you decide to trade the grey market, you’re trading on the estimated market valuation of a company. The official valuation is only released after the first day of trading – and it's based on the demand shown by the market that day.

So, if you think a company’s market cap will be higher than the grey market price, you’ll ‘buy’. If you think it will be lower than the grey market price, you’ll sell.

How does Brewdog make money?

BrewDog makes money through sales of its craft beers – through supermarkets, online orders and its own bars and hotels. It also makes money through its crowdfunding programme – Equity for Punks.

Can I profit from the Brewdog IPO?

Once BrewDog has listed, you can profit by correctly predicting its share price movements (trading). If your prediction is incorrect, you’d incur a loss. If you decide to invest in BrewDog’s IPO, you could profit by going long – buying the stock in the expectation they will rise in value and then sell them later at a higher price. You could also receive dividends if the company grants them. However, you’d incur a loss if you sell your BrewDog shares at a lower price.

What are the risks of trading or investing in an IPO?

Many risks are involved in all trading and investment activity – IPOs have additional risks. These include:

  • Missing information, such as no patent protection on intellection property, that may affect the share price
  • Limited or no trading history to take into consideration when making decisions
  • Inflated market expectations that don’t materialise
  • Companies not succeeding in meeting their target market capitalisations

Having an understanding of all relevant information is crucial in avoiding trading and investment risks. When trading or investing in IPOs, some documents that are useful include company prospectuses and admission documents.

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1 Based on revenue excluding FX (published financial statements, June 2020).
2 We do not offer grey markets on all IPOs.
3 Trade in your share dealing account three or more times in the previous month to qualify for our best commission rates. Please note published rates are valid up to £25,000 notional value. See our full list of share dealing charges and fees.
4 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
5 Not all subscriptions will be available with PrimaryBid. Sign up for PrimaryBid and enable push notifications in their app to be alerted to new offerings.