Trade on upcoming IPOs
Trading on shares isn’t always black and white. Our pre-IPO market lets you speculate on a company’s share price before it lists on the stock market.
How it works
Normally, you trade shares after a company's initial public offering (IPO) – when the company has gone public by listing on a stock exchange, like the FTSE 100 or S&P 500.
With our pre-IPO market, you can take a position on a company before its IPO, with either a spread bet or contract for difference (CFD) trade.
Example: ABC Company is expected to list at 500p.
If you think the price will move higher, you would go long (buy)
If you think the price will move lower, you would go short (sell)
Once the company is listed on a stock exchange and the shares start trading in the underlying market, the company rolls into our listed share spread bet/CFD. This means your position continues and you retain full control over when to close it.
Leveraged trading products, such as spread bets and contracts for difference (CFDs) magnify profits and losses equally, so it’s important to manage risk carefully.
If the IPO is cancelled or doesn’t happen for any reason, your open trades will be closed at the price at which they were opened, and no profit or loss will be realised.
Which companies are available to trade pre-IPO?
When a company announces plans to go public, we may open a pre-IPO 'grey' market, based on our view of what the shares could be worth. When the company goes public and lists, your pre-IPO spread bet or CFD position rolls into the listed share spread bet/CFD. This means your position continues and you retain full control over when to close it.
Right now, you can trade on our pre-IPO SpaceX market. Other companies that could announce IPO plans include Revolut and OpenAI. Follow the links below to learn more about SpaceX, and other potential IPO stocks.
Pre-IPO trading: a step-by-step guide
Interested in trading on our pre-IPO markets? Here’s how it works:
In the platform, go to ‘Products’ and then 'Shares' and search by company name.
Buy (go long) if you think the price will rise above the quoted level after its IPO, or sell (go short) if you think it will move lower.
Choose your stake and consider a stop-loss to manage risk. Check margin requirements before placing the trade.
Your position rolls into the listed share spread bet/CFD once the company lists. You retain control over when to close it.
Why trade with us?
Track your trades at home or on the move with our web platform, iOS and Android app.
Go long or short on shares before they go public.
Leverage amplifies potential profits and losses equally, so manage risk carefully.
FAQs
Pre-IPO trading, also known as grey market trading, allows you to take a position on a company’s potential share price ahead of its initial public offering (IPO). Unlike investing through an IPO application, you're not buying or applying for shares. You're place a spread bet or contracts for difference (CFD) position based on a synthetic price which reflects market expectations of a potential IPO valuation.
The pre-IPO price can move significantly as new public information and market sentiment evolve. Your trade rolls into the listed share spread bet/CFD once the company lists. The position remains open and you retain control over how long you wish to keep it open, and when to close it.
You can start trading once the pre-IPO market is open, right through to beyond its initial public offering (IPO), after the company has listed on an exchange. The pre-IPO spread bet or CFD rolls into a listed share spread bet/CFD once the company has listed. Your position remains open and you can decide when you wish to close it.
When the company successfully lists, your pre-IPO spread bet or CFD transitions seamlessly into a standard spread bet/CFD on the listed share. The instrument then references exchange-based pricing and normal trading conditions apply. There is no forced settlement or manual intervention required – the position continues under the same listing. Your position remains open and you retain control over when to close it.
If the IPO is cancelled, or the company says it will not go ahead, open positions will be cancelled at the original execution price, so no profit or loss is realised. Any positions that were closed before the cancellation won't be reversed, and so will remain binding.
Yes, you can take a short (sell) position if you believe the company’s share price will fall below our pre-IPO price once the company lists.
Pre-IPO markets can move quickly and may be volatile. It's important to note that there is a risk the IPO opens at a price significantly different from the pre-IPO level. This is known as 'gap risk' and is an inherent feature of pre-IPO trading. The divergence can occur because pre-IPO pricing is based on expectations, while the listing price is determined by the actual IPO process and early exchange trading.
When you trade with leverage, your potential profits and losses are magnified based on the full value of the trade. However, as a retail client, you can't lose more than your account value, due to negative balance protection. If your margin level is insufficient to maintain your position, it may be automatically closed out. Learn more about managing your risk
Upcoming pre-IPO markets will appear in the product library under shares in our platform when available.
Yes. You can close your position during our normal trading hours at any time from when the pre-IPO instrument is made available on our platform until it transitions to the listed share spread bet or CFD at IPO.
The pre-IPO instrument provides synthetic exposure to the expected share price of a company before it lists on a stock exchange. Before listing, prices are based on our assessment of the company’s expected list price, drawing on publicly available information such as:
The indicative IPO price range, where available
Valuations of comparable listed companies
Market conditions and sentiment
Prices are not based on private secondary market transactions and may differ significantly from private market valuations. There is no active underlying market on a company’s shares before it lists, which means there is no exchange-traded reference price that we can use before the IPO. This may have the following implications:
Prices may be volatile
Spreads may be wider than for other share spread bets and CFDs
The product cannot be hedged in the open market
The IPO may open at a price materially different from the pre-IPO price, potentially exposing you to gap risk and potentially significant losses
Price updates vary by company and depend on how close the IPO date is. As more information becomes publicly available, including updates to the expected price range or demand for the shares, prices may be updated more frequently. Updates may be irregular and pricing may change quickly.
When the company lists, your pre-IPO instrument converts into a standard share spread bet or CFD, depending on which product you're trading. From that point, pricing is based on the underlying exchange-traded share. You can close your position during normal market hours, subject to market conditions. Spreads may initially be wide and volatility may be high while the market establishes a price.
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