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

What are the best upcoming IPOs to watch?

We take a look at the UK, US and international IPO contenders to watch in 2021 as the global economy recovers.

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Call 0800 195 3100 or send us an email with any questions about opening a trading or investment account between 8am and 6pm (UK time) on weekdays.

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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.

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Nine upcoming UK IPOs to watch

As the number of 2021 listings are accelerating, could these be the best UK initial public offerings (IPOs) to watch?

  1. EG Group
  2. Oxford Nanopore Technologies
  3. Jaguar Land Rover
  4. BrewDog
  5. Monzo
  6. Starling
  7. McLaren Group
  8. Virgin Atlantic
  9. PureGym

EG Group (estimated market cap: £10 billion)

A blockbuster IPO is on the cards for British retailer EG Group, which is valued at around £10 billion. The company has petrol stations and convenience stores in Europe, the United States and Australia. Many investors are keeping a close eye on the upcoming listing after EG Group acquired supermarket chain Asda and restaurant chain Leon. However, many are wary of the group since its sales slumped due to lower fuel demand in 2020.

Despite EG Group’s revenue dropping from £22.4 billion in 2019 to £20.7 billion in 2020, it had an EBITDA increase of 48%.

Learn more about the EG Group IPO or find out how to trade UK listings

Oxford Nanopore Technologies (estimated market cap: £2.3 billion)

Oxford Nanopore Technologies is a spin-off of the University of Oxford and was founded in 2005. To date, the company has raised around £1 billion in investment funds.

Oxford Nanopore Technologies develops products that are used to analyse DNA, RNA, proteins and small molecules. These products can be applied in scientific research, crop science and more. The company’s also produces products that track Covid-19 variants.

Ahead of its London Stock Exchange (LSE) IPO, Oxford Nanopore Technologies is valued at £2.3 billion. The listing is said to be planned for Q3 or Q4 of 2021, but will depend on the market and other conditions.

Find out how to trade UK listings like Oxford Nanopore Technologies

Jaguar Land Rover (estimated market cap: £2 billion)

Jaguar Land Rover (JLR) is part of India’s Tata Motors, which is already listed in India and New York. Optimism surrounding JLR’s IPO has dwindled as a result of delays to Brexit, declining diesel sales, a drop in Chinese demand and – more recently – the coronavirus crisis.

The company reported a strong end to the fiscal year, with retail sales of 123,483 vehicles that marked an increase of 12% in the first three months of 2021 year on year.1

Learn more about the Jaguar Land Rover IPO or find out how to trade UK listings

BrewDog (estimated market cap: £2 billion)

BrewDog, a famous craft beer producer, announced in 2018 that it’s considering an IPO, but that it was awaiting the right market conditions. An IPO would represent the next stage for the group, which started as a tiny operation in Scotland. The company’s crowdfunding route, that proved vital in its early years, secured about 200,000 investors.

In June 2021, an open letter with allegations of a toxic work culture within the company was published by a number of former employees. While BrewDog’s co-founder and CEO James Watt issued an apology, it’s not quite clear how the allegations affect the company’s plans to go public. The business is valued at about £2 billion and has raised over £73 million across various fundraising rounds.

Learn more about the BrewDog IPO or find out how to trade UK listing

Monzo (estimated market cap: £1.2 billion)

Monzo is an online bank with over 5 million customers, of which around 135,000 are on paid account tiers. The company is one of the leading UK innovators offering a non-traditional option to banking.

Alongside its upcoming IPO, Monzo is also focusing on US expansion plans, having already appointed CEO Carol Nelson for its US operations.

In 2020, the company’s valuation was estimated at £1.2 billion – a decrease from £2 billion in 2019. Detailed information regarding the company’s IPO is yet to be released.

Learn more about the Monzo IPO or find out how to trade UK listings

Starling (estimated market cap: £1.1 billion)

Starling is one of the UK’s leading digital-only banks. It was founded in 2014 by Anne Boden, a former banking executive. Boden, who’s also the CEO of Starling, is planning to list the company on the LSE.

In an early 2021 fundraising round, Starling raised £272 million, which is said to have placed its valuation in excess of £1.1 billion. The company then announced that it got a £50 million extension on this funding round, an investment from Goldman Sachs Growth Equity, increasing the total to £322 million.

With over two million current accounts, the company isn’t only planning to expand its products and services, it’s also looking to broaden its offerings into Europe.

Learn more about the Starling IPO or find out how to trade UK listings

McLaren Group (estimated market cap: £560 million)

McLaren Group, the British Formula One firm and sports carmaker, has been linked to an IPO since 2011 when its executive chairman stated that it might happen within five years. The environment for carmakers was very volatile in recent years, with Brexit impacting supply chains and the trade war raising the cost of doing business.

However, there are reports that the company plans to go public through a reverse takeover this year. There’s already been a round of funding from a group led by MSP Sports Capital, which is said to have obtained a significant minority stake of the company in December 2020.

In July 2021, McLaren CEO Zak Brown confirmed that the company raised £550 million – Ares Management and PIF, a Saudi Arabian state fund, were the majority investors.

Learn more about the McLaren Group listing or find out how to trade UK listings

Virgin Atlantic (estimated market cap: unknown)

Virgin Atlantic, a subsidiary of Virgin Group, had its first flights taking off in 1984. The company, like the entire airline industry, was hit hard by the effects of Covid-19. This led to Virgin Atlantic filing for bankruptcy. As economies are recovering and the demand for international travel is increasing, the company has its sights set on a London Stock Exchange (LSE) IPO.

Virgin Atlantic expected to be profitable in 2020, but this didn’t pan out due to the impacts of the pandemic. Instead, the company reported a loss of £659 million.2

Find out how to trade UK listings like Virgin Atlantic

PureGym (estimated market cap: unknown)

With almost 300 clubs across the UK, PureGym is considering an IPO as a means of funding expansion.3 Since its 2009 launch, the company has gained over a million members, more than 500 gyms and around 3000 employees.

In 2016, PureGym announced that it was getting ready to list on the London Stock Exchange. The company backed out of these plans, citing weak investor enthusiasm. PureGym was valued at £600 million in 2017 after Leonard Green & Partners acquired majority ownership of the business – a figure that has likely increased since then.

Find out how to trade UK listings like PureGym

Nine upcoming US IPOs to watch

One of the companies on this list has an estimated market cap of almost $100 billion. Are these the best upcoming US IPOs?

  1. Stripe
  2. TikTok Global
  3. Instacart
  4. Starlink
  5. WeWork SPAC
  6. Cazoo SPAC
  7. Nextdoor
  8. Virgin Orbit
  9. Graphcore

Stripe (estimated market cap: $95 billion)

Established by the Collison brothers in 2010, Stripe is a fintech company that develops economic infrastructure to facilitate digital payments and other financial business management processes. Stripe enables millions of companies to start, run and scale their businesses in over 120 countries.

Similar to other digital innovators who have seen a boost in business since the pandemic hit, Stripe has been thriving. In 2020, its average year-on-year sales growth jumped from 15% to 45% in just three months (Q2), before dropping to 37% (Q3) with the easing of some lockdown restrictions. In addition to garnering more customers through the spike in e-commerce activity, the accelerated performance of Stripe customers such as Zoom, Instacart and Slack has also contributed significantly to Stripe’s success.

In March 2021, Stripe was valued at $95 billion after a $600 million fundraising round. The company is said to be considering a direct listing, and has reportedly also appointed a legal firm to assist in its listing preparations.

Learn more about the Stripe listing or find out how to trade US IPOs with us

TikTok Global (estimated market cap: $50 billion)

A TikTok IPO is an exciting prospect for many, as the mega-successful app received a $50 billion valuation in July 2020. TikTok is bigger than social competitor Snap Inc, even though it launched years after.

Despite the Trump administration’s national security concerns about TikTok, and the subsequent efforts to ban it in the US, it’s still operating in the country and even gained seven million new US users in the first four months of 2021.4

In June 2021, President Biden revoked and replaced the executive order by former US President Donald Trump to ban TikTok. The new order outlines criteria to investigate apps that may pose risks to US data privacy or national security due to their links to foreign adversaries.

TikTok is owned by Chinese company ByteDance, which put an indefinite hold on plans to list offshore in July 2021 after local regulators raised data security concerns. Early August 2021 reports have stated that the parent company is addressing regulatory concerns to get ready for its own IPO – a Hong Kong listing – which is expected to happen either in Q4 2021 or early in 2022.

Learn more about the TikTok Global IPO or find out how to trade US listings

Instacart (estimated market cap: $39 billion)

Instacart is a grocery delivery service, founded in 2012, that’s said to be preparing to go public via a direct listing, with a valuation of $39 billion.5 The company announced this figure in March, after raising $265 million in venture capital funds – meaning that its valuation has more than doubled from its 2020 market cap of $17.7 billion.

One of its biggest partners, Whole Foods, was acquired by Amazon a few years ago, which made some people wary of the business’s future. However, Instacart has grown to service 15,000 stores across 400 locations in the US and Canada. In Q1 2021, the company announced that it’s considering international expansion.

Learn more about the Instacart listing or find out how to trade US listings

WeWork (estimated market cap: $9 billion)

After WeWork’s plans to go public via an IPO collapsed in 2019, the company is giving it another go. Leading up to its stock market debut, the office-sharing company has been hit hard by the Covid-19 pandemic, reporting a $2 billion loss in Q1 of 2021.

WeWork is planning on listing on the Nasdaq through a special purpose acquisition company (SPAC) merger with BowX Acquisition Corporation. A SPAC is a company with no commercial operations that has been specifically set up to facilitate the transition for a private firm to go public through a merger – this method of listing has been gaining popularity as an alternative to a traditional IPO. The company’s SPAC deal with BowX values it at $9 billion.

Learn more about the WeWork listing or find out how to trade US listings

Cazoo (estimated market cap: $7 billion)

Cazoo is an online car retailer that enables customers to complete used car purchases digitally. Customers can then choose to collect their cars or have them delivered in the UK by Cazoo.

Cazoo is set to list on the New York Stock Exchange (NYSE) via a SPAC, AJAX I Acquisition Corporation. AJAX I is led by Dan Och, a billionaire investor who is said to be planning on joining Cazoo’s board. The SPAC deal is expected to raise around $1.6 billion and values Cazoo at $7 billion, over double its October 2020 $2.6 billion estimated valuation.

With France and Germany expansion plans underway, the company’s Q2 2021 results included a gross profit of $11.1 million. Cazoo’s revenue increased by 605% year on year to $196 million.

Learn more about the Cazoo listing or find out how to trade US listings

Nextdoor (estimated market cap: $4.3 billion)

Nextdoor is a social network platform that enables neighbours and organisations to connect about the things that matter to their communities. This company offers its services in over 275 000 neighbourhoods across 11 countries and has, naturally, experienced accelerated growth as a result of Covid-19 restrictions and safety measures.

In July 2021, Nextdoor announced that it’ll go public via a SPAC merger with Khosla Ventures Acquisition Co II in a deal that values the company at $4.3 billion. The merger agreement comes with a $270 million investment by Baron Capital Group. During its September 2019 funding round, Nextdoor was valued at $2.2 billion, a figure that was expected to double when the listing happens. With the company now being valued at $4.3 billion, this prediction has proven to be almost spot on.

Find out how to trade US listings like Nextdoor

Virgin Orbit (estimated market cap: $3 billion)

Virgin Orbit is a subsidiary of Virgin Group, alongside other companies such as Virgin Galactic (from which it was spun off), Virgin Active and Virgin Hotels. The satellite launching services company is said to be valued at $3 billion and is planning on going public via a SPAC merger with NextGen Acquisition II.

If Virgin Galactic going public via a SPAC merger is an indication of things to come with the Virgin Orbit listing, a US listing might be on the cards.

Learn more about the Virgin Orbit listing or find out how to trade US listings

Graphcore (estimated market cap: $2.8 billion)

Graphcore, a UK semiconductor startup that designs and manufactures machine learning and artificial intelligence software accelerators, is said to be looking to list on the Nasdaq.

Founded in 2016, it reached unicorn status in 2018 and by December 2020, it had raised around $700 million and had an estimated valuation of $2.8 billion.

Graphcore’s international operations are supported by offices in locations around the worlds – these include London, Munich, Paris, New York, Tokyo, and Seoul. The company has over 450 employees.

Five upcoming international IPOs to watch

Which of these could be the best international IPOs to follow?

  1. ByteDance
  2. Ant Group
  3. Universal Music
  4. Lamborghini
  5. Rimac Automobili

ByteDance (estimated market cap: $425 billion)

Chinese start-up ByteDance became a household name after launching its famous TikTok app in 2017. According to August 2021 reports, the company is addressing regulatory concerns to get ready for its Hong Kong IPO, which is expected to happen either in Q4 2021 or early in 2022.

This news came after ByteDance put an indefinite hold on plans to list offshore in July 2021 after local regulators raised data security concerns. ByteDance’s valuation is estimated at around $425 billion.

ByteDance started posting a profit in June 2019 and reportedly reached its revenue goal of $20 billion for that year. It relies heavily on advertising for income, but is always looking to develop new products that could fortify its revenue stream.

Learn more about the ByteDance IPO or find out how to trade international listings

Ant Group (estimated market cap: $120 billion)

Ant Group is a Chinese online payment company founded by Jack Ma, also the founder of Alibaba. Originally, it was called Alipay and serviced Alibaba – but it was rebranded in 2014 to become a separate entity, namely Ant Group.

Ant Group is said to be valued at over $120 billion – a figure that’s less than half of its 2020 valuation that was north of $300 billion.

Originally, Ant Group’s IPO was expected to take place on 5 November 2020. However, two days before the listing, the Shanghai Stock Exchange announced that the IPO would be suspended due to regulatory issues. After this announcement, Ant Group suspended the Hong Kong listing itself. The share price for its Hong Kong listing had been set at HK$80, while its Shanghai listed stock was set to start trading at 68.8 yuan.

Learn more about the Ant Group IPO or find out how to trade international listings

Universal Music Group (estimated market cap: $40 billion)

Universal Music Group (UMG) is the world’s largest music label. Some of the company’s artists are The Rolling Stones, Taylor Swift, Alicia Keys, Lady Gaga, Coldplay and Post Malone.

UMG is expected to go public in in Q3 2021. It is said to be considering a dual listing, on the NYSE and the Euronext NV stock exchange in Amsterdam.

After a consortium led by Tencent Holdings completed a 20% acquisition of UMG, the global music company’s valuation was estimated to be around $36.4 billion. Since then, the company is now valued north of $40 billion, after a Goldman Sach’s report estimated the company’s valuation at $53 billion.

UMG’s parent company, Vivendi, was set to sell another 10% of UMG to a SPAC that’s backed by billionaire Bill Ackman. These plans fell through after the US Securities and Exchange Commission (SEC) intervened – apparently the transaction didn’t meet NYSE SPAC rules.

Learn more about the Universal Music Group IPO or find out how to trade international listings

Lamborghini (estimated market cap: $12 billion)

Lamborghini has done well despite Covid-19 disruptions, and is rumoured to be planning an IPO in the near future. The carmaker is owned by the Volkswagen Group, which is said to also be preparing its other Italian divisions such as Ducati and ItalDesign for possible IPOs.

Lamborghini’s target valuation is rumoured to be $12 billion, but finer details of the listing remain unknown. The company is said to have received an offer of around $12 billion in Q2 of 2021 – a Volkswagen spokesman said that ‘Lamborghini is not for sale’.6

Learn more about the Lamborghini IPO or find out how to trade international listings

Rimac Automobili (estimated market cap: unknown)

Rimac Automobili is a car and component manufacturer that specialises in hypercars. The company uses and builds cutting-edge technology to ensure a high-performance and advanced finished product.

Mate Rimac, who founded the company in 2009, has said that although the company started with hypercars, it’s now also working with more mainstream vehicles.

While the details regarding Rimac Automobili going public are unknown, a spokesman for the company said 'as for going public, we're considering different options, but it hasn't been decided which direction we'll go in'.7 Rimac Automobili has revealed plans for its new headquarters in Croatia – a development that is estimated to cost around $240 million.

Learn more about the Rimac Automobili IPO or find out how to trade international IPOs

DoorDash (market cap: $72 billion)

DoorDash, a food delivery business, made its stock market debut in December 2020, floating at $182 a share. By the end of the first day of trading, shares were up to $189.51, an 86% spike from its initial $102 initial public offering price. The company raised $3.4 billion in its IPO, with an initial valuation of $72 billion.

DoorDash saw increased demand during the pandemic, as restaurants were forced to close and consumers were less inclined to eat out – opting instead for home-delivery food services.

Trade DoorDash shares with us

Didi (market cap: $68 billion)

Didi, a Chinese ridesharing company, listed on 30 June 2021 on the NYSE, despite political tensions associated with the trade war between the world’s biggest economies, China and the US. A Chinese regulatory probe and a possible Didi ban in the UK are part of the aftermath of the controversial IPO.

With an initial share price of $14, the company was valued at $4.4 billion at the end of its first trading day, which marked the biggest Chinese company IPO to happen in the US. The listing also put Didi among the past decade’s biggest IPOs.

Trade Didi shares with us

Airbnb (market cap: $47 billion)

Airbnb is an online booking space for accommodation, primarily based on the principle of home-sharing. In 2019, it confirmed that it was ready to go ahead with a 2020 IPO, but then the travel industry took a major knock due to the global coronavirus shutdown. However, the company listed on 10 December 2020 with a valuation of $47 billion.

Shares floated at $68 and increased by a massive 113% overnight, almost doubling the market cap to $86.5 billion. The business’s outlook will depend largely on the short term – ie how the global economy recovers from the Covid-19 crisis, as restrictions on domestic and international travel ease.

Trade Airbnb shares with us

Roblox (market cap: $45.3 billion)

Roblox is a video game and user-generated content platform with widespread popularity across the United States, and other countries such as Brazil, Russia and Turkey.

But it’s not all fun and games – with well over 150 million active users per month, Roblox definitely means business. Initially, investors anticipated the blockbuster IPO when the company filed its prospectus in November 2020. However, Roblox decided to opt for a direct listing on the NYSE instead. This listing happened on 10 March 2021, reaching a valuation of $45.3 billion.

Trade Roblox shares with us

Robinhood (market cap: $31.8 billion)

Robinhood listed on the Nasdaq on 29 July 2021, reaching a valuation of $31.8 billion at the end of its first trading day. Offering 55 million shares, with an opening share price of $38, the company raised $2.1 billion in its IPO.

Robinhood originally started as a stock trading app but it has since expanded into other services. Going public is said to be part of a wider plan to become a full-service finance company over the next couple of years.

Trade Robinhood shares with us

UiPath (market cap: $29 billion)

UiPath listed on the NYSE on 21 April 2021. The IPO raised $1.3 billion, after almost 24 million shares were sold at $56 each. As of 21 April 2021, the company is valued at $29 billion, considering outstanding shares that are listed in its prospectus.

Founded as ‘DeskOver’ in 2005, UiPath has grown into an industry leader, developing business process automation technology for over 6300 customers worldwide. Its robotic process automation (RPA) software computerises workflows to eliminate time-consuming, repetitive and tedious tasks.

Trade UiPath shares with us

Vantage Towers (market cap: $14.5 billion)

Vodafone’s Vantage Towers listed on the Frankfurt Stock Exchange in March 2021, with shares priced at €24 each. An industry leader in Europe, this became the largest stock market debut in Germany since 2018. Vodafone said that proceeds of the IPO would go to settling some of its debt.

With over 82 000 macro sites across 10 countries, the company stated that it seeks to ‘accelerate a sustainably connected Europe’.

Trade Vantage Towers shares with us

Oatly (market cap: $13 billion)

Oatly, a company founded in 1992, went public on 20 May 2021. The Nasdaq listing saw shares priced at $17 each, which increased to $22 soon after trading started. The company was targeting a valuation of $10 billion, but its market cap shot up to $13 billion at the end of its first trading day.

The Swedish food brand produces milk alternatives and a range of other organic products. The rise in oat milk popularity has caused a significant growth in sales in the plant-based milk category. As a result, the Oatly brand is currently available in over 20 countries.

Oatly filed for a US IPO in February 2021, a move that put Oatly on the growing list of publicly-traded vegan stocks.

Trade Oatly shares with us

Endeavor (market cap: $10.3 billion)

Endeavor Group Holdings, a holding company for several talent and media agencies, made a comeback after its 2019 IPO plans didn’t take off.

The company reached a valuation of $10.3 billion, when it listed on the NYSE on 29 April 2021. Endeavor’s second attempt at an IPO came with Elon Musk, owner of SpaceX and CEO of Tesla, as a board member. In its IPO, the company offered 21.3 million shares at $24 per share. It also restricted another 3.2 million shares for the IPO underwriters, which were available over a period of 30 days.

Trade Endeavor shares with us

Wise (market cap: £8.8 billion)

Wise, formerly known as TransferWise, marked London’s biggest tech listing with its July 2021 direct listing. The company reached a valuation of almost £8.8 billion at the end of its first trading day on the LSE. Having started out offering money transfer services, the company’s growing product range was the driving force behind the decision to change its name.

This fintech company transfers over $7 billion per month to over 10 million international customers.

Trade Wise shares with us

Bumble (market cap: $7.7 billion)

Bumble is a dating app that listed on the Nasdaq on 10 February 2021, raising $2.15 million in the process. The company was valued at $7.7 billion at the end of its first trading day, after selling 50 million shares at an opening price of $43 each.

The company’s outlook is positive, considering its recent performance. By the end of the third quarter of 2020, it had more than 42 million active users, and revenues had increased by 14% compared to the previous year.

Trade Bumble shares with us

Deliveroo (market cap: £7.6 billion)

Deliveroo is a food delivery business headquartered in the UK, with operations across the world. It listed on the LSE as Deliveroo Holdings on 31 March 2021, with a valuation of £7.6 billion. Previously, Deliveroo hinted at a 2020 IPO following the collapse of short-lived talks about a merger with Uber.

The price per share was set at £3.90 for the IPO. Many reports state that Deliveroo’s focus is on growing the business and reaching new customers. Covid-19 may have potentially given it that boost as more people enjoyed stay-at-home meals.

Trade Deliveroo shares with us

Dr. Martens (market cap: £3.7 billion)

Dr. Martens listed on 29 January 2021 – shares floated at £3.70, hitting a high of nearly £4.55 before closing at £4.50. Ever since, its shares have been available on the LSE under the ticker DOCS.

The Dr. Martens IPO was a hotly anticipated listing. That’s because the company is an iconic global brand, a fact that’s reflected in annual sales figures of around 11 million pairs of footwear in more than 60 countries. The company posted revenues of £672 million in the year ending 31 March 2020.

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Krispy Kreme (market cap: $2.7 billion)

Krispy Kreme, an international franchise that produces and sells doughnuts (retail and wholesale), went public for the second time on 1 July 2021. The company’s first listing was in 2000 – it then returned to private ownership in 2016.

Krispy Kreme, which also sells coffee and sweets, sold its shares on the public market for an initial price of $17 per share. The company raised $500 million and had a valuation of $2.7 billion at the end of its first trading day on the Nasdaq.

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Darktrace (market cap: £1.7 billion)

Cyber security company Darktrace listed on the LSE on 30 April 2021, with a valuation of £1.7 billion. The business supplies software to corporates that helps to detect cyber threats on their networks – and it’s been particularly successful during the Covid-19 lockdown period, as millions of people switched to remote working.

The company launched in 2013 – it now has over 5000 customers across 110 countries and employs more than 1500 people.

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Moonpig (market cap: £1.4 billion)

Moonpig an internet-based company that sends greeting cards, flowers and other personalised gifts in the UK, the Netherlands, the Republic of Ireland, Australia and the US. The company went public on 2 February 2021 on the back of a tremendous increase in business and profits during the worldwide lockdown period. Its annual profits climbed by around 137%, reaching the £33 million mark.

Shares floated at £3.50 and increased by over 25% to £4.40 in less than an hour after trading began.

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Trustpilot (market cap: £1.1 billion)

The reviews website Trustpilot raised £473 million in its March 2021 LSE listing, valuing the company at around £1.1 billion. By the end of 2020, the company had hosted 120 million reviews on its website. Most of Trustpilot’s revenue comes from clients subscribing to its online services.

Trustpilot is a leader in the online review space, and takes a proactive approach to combatting fake reviews on its platform. With a higher demand for its online services amid the Covid-19 lockdowns, the company’s 2020 revenue of $101.9 million is 25% more than its revenue for the previous year.

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Made.com (market cap: £775.3 million)

Made.com, a designer retail homeware and furniture company, listed on the LSE in June 2021. The initial price per share was 200 pence, which gave the company a valuation of £775.3 million. Made.com raised around £100 million in its IPO.

Customers can make purchases online, an alternative to the company’s networked showrooms across Europe for on-site sales. Made.com uses artificial intelligence (AI) to gauge whether its items are likely to sell by utilising existing customer data, eg online reviews. This, in turn, is said to make supply and demand more balanced, meaning lower prices for customers.

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PensionBee (market cap: £365 million)

PensionBee is an award-winning online pension provider that has recorded almost 500,000 registered customers since its inception in 2014. The company went public on 21 April 2021.

In November 2020, the company announced its plans to list on the LSE’s High Growth Segment by 2022. However, following a spike in business amid the Covid-19 pandemic, PensionBee accelerated its IPO plans. The company reported a 37% growth in new active clients between March and July 2020.

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How to get exposure to IPO stocks

Grey market

Our exclusive grey markets enable you to speculate on a company’s market cap before it lists on a stock exchange.8 You’ll ‘buy’ (go long) if you think the company’s market cap will be higher than the grey market price at the end of the first trading day, or ‘sell’ (go short) if you think it will be lower.

To start trading grey markets, open an IG trading account.

Primary market: buying at the IPO price

If a company has filed for an IPO and you want to invest in the stock, you can subscribe to the IPO ahead of the offering with us through PrimaryBid.9 By subscribing to the IPO, you’ll receive a stock allocation on the primary market, at the same time and for the same price as institutional investors. This means you can take your position without having to wait for the secondary market to open.

You can access the primary market by creating a share dealing account with us – which you can use to log in to PrimaryBid. Note that this is only available for UK IPOs.

Create a share dealing account to get started

Secondary market: buying the stock after the IPO – investing or trading

Once the stock has listed, the secondary market will open, which is where individual investors exchange the stock between themselves.

  • It usually takes a few hours for stocks to be available after a US IPO, as is the case with all brokers
  • For UK IPOs, stocks should be available to trade from 8am on the day of the listing
  • All other IPOs we offer should be available right away, from the time the exchange opens on the day of listing

There are two ways for you to take a position on the secondary market following an initial public offering. You can:

Trading vs investing in IPO shares

When trading a company’s 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.10

You’ll only need a small deposit – known as margin – to get full market exposure. Trading on leverage can magnify your profits, but it can also magnify your losses, making it important to have a suitable risk management strategy in place.

Learn 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 shares, you can only make money if the share price goes up – but you would also be entitled to any dividend payments that are made, and you’ll have shareholder rights. To open a share dealing position, you’ll need to put down the full value of your investment. When investing, you’ll never lose more than this initial outlay.

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Last updated: 11 August 2021

FAQs

How can you trade upcoming IPOs?

With us, you can trade upcoming IPOs before the listing – if a grey market is available. A grey market enables you to speculate on the company’s share price before the IPO.

If we offer a grey market, the price will be based on our prediction of the company’s market cap at the end of its first trading day. You’d ‘buy’ if you think the market cap will be higher than the grey market price at the end of the first trading day, or ‘sell’ if you think it will be lower.

How soon can you buy and sell IPO shares?

You can buy and sell IPO shares as soon as the company lists on the stock market. You can either speculate on share price movements by spread betting and CFD trading, or you can buy shares outright by share dealing.

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

There is risk in all trading and investment activity. IPOs have additional risks, which include:

  • Having inadequate information about the company can mean that details that might affect the share price are missed, eg lack of research such as fundamental analysis and staying up to date with the latest news about the company
  • Little to no trading history to assist in making informed decisions
  • High market expectations that do not materialise
  • Companies not meeting their target valuations

By staying informed about the company and all details that might affect its share price, you’ll be avoiding risks that could affect your positions. In the case of IPOs, useful documents include company prospectuses and admission documents.

Develop your knowledge of financial markets

Find out more about a range of markets and test yourself with IG Academy’s online courses.

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1 Jaguar Land Rover, 2021
2 Business Traveller, 2021
3 The Times, 2021
4 Wired, 2021
5 Reuters, 2021
6 WhichCar, 2021
7 Autoblog, 2021
8 We do not offer grey markets on all IPOs.
9 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.
10 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.