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Upcoming IPOs in the UK

Initial public offerings (IPOs) are a way for private companies to raise money, by offering their shares​ to the public on the stock market. This is an important time for private companies to become more widely available and allow investment access to the public.

Upcoming IPOs can benefit private investors in particular. This is because many IPO companies will include share premiums for their existing investors, so this can result in potential profits. Existing shareholders of a private company could include family, friends, and professional investors such as venture capitalists. These private equity investors help to finance companies with high growth potential in exchange for a stake in their equity.

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What is IPO investment?

An initial public offering (IPO) happens when shares of a previously private company are offered to the public on a stock exchange. This is part of a new stock issuance. A company that is planning an IPO will select underwriters to manage their financial risk, and chooses a stock exchange​ in which to feature their newly public shares. When the company goes public, the private shareholders’ shares will value at the same price as the public share. These are usually a higher value and therefore, they will profit from the relative returns that were expected.

In general, companies can register for an upcoming IPO after reaching a market capitalisation of $1bn, which is the same for a ‘unicorn company’. However, as long as the business can meet the listing requirements for a specific market and prove their potential for future profit, they can also qualify for an IPO.

Secondary offering after IPO

One of the advantages of IPOs is the ability to raise even more capital in the future. A secondary offering after the initial public offering releases the sale of new stock on the exchange, in order to raise more funds for operations. This, in turn, dilutes the percentage of individual ownership for the original investors, which can cause negative investor sentiment. This will also reduce the quality of important company fundamentals​, such as company earnings and P/E ratios for the share price.

Upcoming IPOs to watch

  • DoubleDown IPO: Although this South Korean company has been among the top 20 highest mobile game publishers since 2015 on the Apple Store, DoubleDown Interactive is still private. It originally planned to go public in June 2020, but scaled back the offering size and postponed the IPO, so investors are eagerly awaiting its future IPO announcement.
  • Ant Group IPO: An affiliate company of e-commerce giant Alibaba, Ant Group is on track to make the world's largest debut in the stock market. The Chinese fintech company's IPO is expected to raise up to $34 billion when it lists its shares on the Shanghai and Hong Kong stock exchanges. Ant Group (previously Ant Financial) is an online payments system that also offers wealth management and insurance services.
  • Deliveroo IPO: Deliveroo is one of the most popular takeaway and food delivery services in the UK, although it has strong competition from rivals, which has only increased since the start of the pandemic in early 2020. The company is planning to debut its shares on the London Stock Exchange on 8th March 2021, where it could value the business at up to £8 billion.
  • Nextdoor IPO: Nextdoor is a social networking site that connects residents of the same neighborhood, where it has apparently reached 1 out of 4 neighborhoods in the US so far. It is reportedly targeting a valuation of up to $5 billion before the end of 2021.
  • Oatly IPO: Vegan dairy alternative brand Oatly is reportedly planning an IPO within the first half of the year, where the company could be valued at up to $5 billion, according to Bloomberg. The rise of veganism in recent years has become an investor trend, with other plant-based companies reporting a rise in share price and consumer activity.
  • TransferWise IPO: One of the most eagerly awaited fintech IPOs, the online payments service TransferWise is planning to offer its shares to the public sometime in 2021. The British company has experienced rapid international growth in recent years and is expected to be valued at well above $5 billion. The IPO will be led by banking giants Goldman Sachs and Morgan Stanley, with TransferWise's shares to be listed on the London Stock Exchange.
  • Coinbase IPO: Coinbase is the largest cryptocurrency exchange in the US and acts a bitcoin, ripple and altcoin broker for both retail and institutional traders. The company is planning to sell their shares directly on the NASDAQ after a rally in cryptocurrencies throughout 2020, which could value the unicorn company at around $100 billion, which is a lot higher than their previous valuation of $8 billion in 2018.
  • Trustpilot IPO: Trustpilot is an online reviews platform based in Copenhagen, Denmark. Trustpilot users have increased since the start of the pandemic due to the rise of e-commerce, where the website serves to provide reviews for a large variety of sectors and markets. After investing in significant technology changes in 2020, Trustpilot is planning to debut their shares in early 2021 on the London Stock Exchange.
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How to trade IPO stock

A number of trading platforms specialise in pre and upcoming IPOs, where you can browse and choose a stock to invest in, before its future IPO is carried out. Once the company is public, however, you can trade it like any other share in the stock market, using financial derivatives, such as futures, forwards and options contracts.

After a company has passed the IPO process and listed its shares on a stock exchange, it will be available for public trading. With us, traders can speculate on the price movements of the underlying share through spread betting and contracts for difference (CFDs), which are both derivative products. These products allow you to trade on price movements without taking ownership of the asset, so you can either go long or short on your position.

Private companies with an upcoming IPO could include rivals to some of the largest companies in the world, within the technology, renewable energy, e-commerce, and healthcare industries, at the very least. Open a live account to get started investing in IPOs. Spread betting allows you to trade tax-free* in the UK.

Recent IPOs

  • McAfee IPO: McAfee Corp is a leader in cybersecurity services, which are in high demand due to the increase in remote working. The American security software giant raised around $620 million in their IPO at the end of 2020 and has claimed that a portion of the proceeds raised will be used to pay down some of its debt, as well as promising to implement a dividend at the start of 2021. Trade on McAfee's share price now.
  • DoorDash IPO: A rival of Deliveroo and Uber Eats, this company is a food delivery service that has rocketed during the Covid-19 pandemic, due to lockdown restricting the ability to dine out at a restaurant. DoorDash's shares closed up around 85% on the first trading day of its particularly successful IPO. Trade on DoorDash's share price now.
  • Airbnb IPO: Along with the rest of the travel sector, online holiday rental service Airbnb has taken a hit due to the Covid-19 pandemic. However, its declaration of a $219 million profit throughout Q3 has injected new hope into investors that Airbnb could be on its way up, and last April, it raised $2bn for funding. Airbnb's IPO helped to value the company at $47 million in December 2020. Trade on Airbnb's share price now.
  • Wish IPO: A rival of tech giant Amazon, Wish is an e-commerce company that offers bargain prices for electronics, fashion and home décor. It raised over $1 billion in its debut, which would value its total market capitalisation at $17 billion. It launched its shares on the NASDAQ exchange under the ticker WISH in December 2020.
  • Dr Martens IPO: The iconic brand and shoemaker listed around 25% of the company's value in shares in January 2021 on the London Stock Exchange, giving it a valuation of £3.7 billion. Financial Times reports that Dr Martens' online revenue jumped 74% last year as the brand has adapted their marketing strategy for an online audience. Trade on Dr Marten's share price now.
  • Moonpig IPO: Moonpig is an online greeting card store that has experienced growth in 2020 due to the pandemic, as virtual services continue to become more popular. The company started listing on the London Stock Exchange in February 2021 with an overall valuation of £1.2 billion, making it one of the largest UK listings of 2021. Trade on Moonpig's share price​ now.
  • Bumble IPO: Bumble is a dating and social app that was founded by the co-founder of Tinder, where women instead make the first move. The company debuted their shares in February after reaching a peak of over 100 million users in 2020, giving Bumble a valuation of over $13 billion. Bumble's shares closed up by 63% on its opening day on the NASDAQ exchange, where they are listed. Trade on Bumble's share price now.

The above companies are now available to trade on our platform via a spread betting or CFD live trading account. Browse our instruments page to search for more IPO shares that are ready to trade publicly.

IPO under-pricing reasons

An upcoming IPO’s share price is speculated before it is actually announced, in relation to its overall revenue and income. However, an IPO can be under-priced if its sponsors cannot predict the outcome of the stock, and if it's well received. This may be due to a lack of public information about the company, so the stock price will emerge higher than the predicted value.

Another theory is that some companies under-price their IPO below market value in order to attract a wider number of investors. Some investors choose to buy a stake in a company that they can afford, rather than having a genuine interest or hope that that specific company will succeed. This way, it ensures that investors will buy up all the shares of the company’s IPO, rather than having some shares left over.

IPO investing platform

To trade on the price movements of an upcoming IPO stock after it has passed the process, our online trading platform, Next Generation, offers spread betting and CFD trading on more than 9,000 stocks and ETFs. It is a simple process to register for a live account and start trading the share market now.

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IPO news

You can also keep up to date with the latest news and analysis for the stock market, as we keep our online platform updated with daily reports and predictions from our professional market analysts. Alternatively, if you would like to see data from external news providers, our news and insights section offers fundamental analysis stock reports from Morningstar and live updates on the share market from Reuters.

How to buy pre-IPO stock

Before the IPO occurs, there is sometimes a private sale of a company’s shares before the stock is listed on the chosen exchange. These buyers are usually venture capitalists, as mentioned above, as well as private equity investors, hedge funds and other private investors that aim to profit from a stake in the company in the future. They will also be given a discount from the upcoming IPO price to attract a larger number of investors.

Read more information about how to trade stocks in the UK.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK​.​

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.