ByteDance (TikTok) IPO

Chinese start-up ByteDance became a household name after launching its famous TikTok app in 2017. Discover when ByteDance is expected to list and how you can start trading the IPO today with IG.

Start trading today. Call 0800 195 3100 or email newaccounts.uk@ig.com. We’re here 24 hours a day, from 8am Saturday to 10pm Friday.

Contact us: 0800 195 3100

Start trading today. Call 0800 195 3100 or email newaccounts.uk@ig.com. We’re here 24 hours a day, from 8am Saturday to 10pm Friday.

Contact us: 0800 195 3100

Why trade ByteDance's IPO with IG?

Trade before the IPO

Get exposure before the listing by trading the predicted market cap – exclusively with IG

Speculate 24/71

Buy or sell our ByteDance (Tik Tok) IPO market around the clock with CFDs and spread bets1

Buy ByteDance stock

Invest in ByteDance the moment it lists with a share dealing account

How to trade the ByteDance IPO

You can trade the ByteDance IPO before and after it lists on the stock market.

  • Before the listing
  • After the listing

Trade IG's ‘grey market’ ahead of the Bytedance (TikTok) listing. The price reflects what our clients expect ByteDance’s market cap to be at the end of its first trading day.

With our grey market, you can:

  • ‘Buy’ if you think the market cap will be higher than the price indicated
  • ‘Sell’ if you think the market cap will be lower than the price indicated

What is a grey market and how does it work?

Sell
Buy

Click through to see the ByteDance grey market analysis chart

You could trade ByteDance (TikTok) after the listing by speculating on its share price movements or investing in its shares.

When you trade with us, you can choose to:

When could the ByteDance (TikTok) IPO happen?

The date for the ByteDance IPO has not been confirmed. Speculation surrounding the IPO date has been rife, with the firm currently reported to be eyeing a 2021 listing in Hong Kong or Shanghai.

At this point, it is unclear whether TikTok will form part of the IPO. Tensions between China and the US are running high, and Trump has threatened to ban the social media platform. It’s also possible that Microsoft will buy a portion of TikTok from ByteDance before the latter can list.

To stay updated with the developments around the ByteDance IPO, sign up to our IPO mailing list.

What is ByteDance’s business model?

ByteDance’s business model is centred around mobile apps and content platforms, such as the news recommendation engine Toutiao and social media video app TikTok. Toutiao offers a tailor-made news feed to users based on how they interact with the content. TikTok is an app that lets users create and share short lip-syncing, comedy and talent videos.

ByteDance relies heavily on advertising for income, but it is always looking to develop new products that could fortify its revenue stream. It has more than three times the number of active users than rival Snapchat, which held its IPO in 2017.

Is ByteDance (TikTok) profitable?

Yes, ByteDance (TikTok) is profitable, as the company is reported to have made net profits of over $3 billion from revenues of $17 billion in 2019.2 This reflected a phenomenal year of growth for the firm, which is reported to have generated a loss of $1.2 billion in 2018,3 from estimated revenues of $7.4 billion.4

In 2020, the company’s growth has continued. It reportedly generated $5.6 billion in revenue in Q1, and is targeting revenues of around $28.7 billion for the year.4

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

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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.

What happens to our ByteDance IPO price if TikTok is banned in the US or another country?

If TikTok is banned in the US or any other country, we will continue to price our ByteDance (TikTok) IPO grey market as normal. That’s because the price reflects the balance of buyers and sellers on our platform, and therefore likely to move as sentiment towards ByteDance shifts.

The market’s price is likely to move in response to real-world events, including changes in regulation, the sale of products, acquisition and shifts in strategy.

What happens to our ByteDance grey market price if TikTok is sold?

If TikTok is sold – in whole or in part – we will continue to price our ByteDance (TikTok) IPO grey market. Again, that’s because the price reflects the balance of buyers and sellers on our platform, and therefore moves as sentiment towards ByteDance shifts. For example, the market was volatile when Microsoft announced it was thinking of purchasing TikTok’s US business, and when Trump announced he was thinking of banning the social media platform.

If TikTok is sold in full, we will change the name of our grey market from ‘ByteDance (TikTok) IPO’ to ‘ByteDance IPO’. However, the name will remain unchanged if the company sells only a portion of TikTok.

Our analysis on the ByteDance (TikTok) IPO

By Chris Beauchamp

The ByteDance (TikTok) IPO grey market saw a significant drop in value between late June and mid-August 2020, falling from $220/230 billion to as low as $91/$101 billion. According to Chris Beauchamp, chief market analyst at IG, this reflected uncertainty surrounding the IPO.

‘It has become possible that the firm will only list in China and not seek a listing in New York or Hong Kong, and with US-China tensions becoming worse the firm may find itself caught in the middle between the two nations,’ said Beauchamp.

‘Allowing Microsoft to buy TikTok would also remove one of the firm's successful divisions, further reducing its attractiveness,’ he added.

Read more analysis on the Microsoft-TikTok deal here

Trade or invest in similar stocks today

If you want to get exposure to other social technology companies right now, you can choose between stocks such as Snap Inc, Pinterest, Facebook and Twitter.

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Prices above are subject to our website terms and conditions. Prices are indicative only.

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How do IPOs work?

IPOs – short for ‘initial public offerings’ – happen when a company decides to list its shares on an exchange. This means the public can then buy or trade the shares.

IPOs can create a lot of interest, especially if the company is doing well. To learn more about IPOs and how they work, watch this short video.

FAQs

Where can I find the ByteDance (TikTok) IPO grey market?

You can find the ByteDance (TikTok) IPO grey market in the ‘popular markets’ watchlist on our online trading platform.

Our ByteDance (TikTok) IPO grey market is the only way you can trade ByteDance before its listing, and is exclusively available to IG clients.

Could I profit from the ByteDance (TikTok) IPO?

Yes, you could make money from the ByteDance (TikTok) IPO. Before the listing, you could profit by correctly predicting the direction of our exclusive grey market price – which moves to reflect expectations for the company’s market cap at the end of its first trading day.

After the listing, you could make money if you correctly predict whether the ByteDance share price will rise or fall using spread bets or CFDs. Alternatively, you could buy ByteDance shares outright and sell them at a later date for profit.

What is a grey market?

A grey market enables you to speculate on a company’s estimated market cap before its shares are released. If you think the estimated value of the company is over- or under-priced, you can use the grey market to back your prediction.

It’s important to note that, when you decide to trade the grey market, you’re trading on the estimated valuation. The official market valuation (what the market thinks the stock is worth) won’t be known until the end of the first day of trading – and it is based on the demand shown by the market that day. When this happens, the grey market will settle.

How does ByteDance make money?

ByteDance makes money by selling advertising space on its social media platforms and apps. These include Douyin, Toutiao, TikTok and Xigua Video. The company is reported to have made net profits of over $3 billion from revenues of $17 billion in 2019.2

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.

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1 24/7 excludes the hours from 10pm Friday to 8am Saturday (UK time), and 20 minutes just before the weekday market opens on Sunday night
2 Business Insider, 2020
3 The Information, 2019
4 Bloomberg, 2020
5 Tech Crunch, 2020

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.