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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. Alternatively, an increasing number of businesses are choosing to use a special-purpose acquisition company​ (SPAC) as it may offer a slightly cheaper and quicker process.

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.
  • 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.
  • Wise IPO: One of the most eagerly awaited fintech IPOs, the online payments service Wise (formerly known as 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 Wise's shares to be listed on the London Stock Exchange.
  • Reddit IPO: Online social network and message board Reddit has just hired its first CFO as it prepares go public on the stock market. The current value of the company is around $6 billion and it plans to expand the business even further with the funding that it receives from the IPO, which may occur in 2021. Reddit's IPO comes at a convenient time for the company, after traders of the forum sparked a rally in January 2021 of shorted stocks such as Gamestop and AMC, causing a short squeeze for the former company.
  • TikTok IPO: TikTok is a popular Chinese social media and video app that has already been valued at around $50 billion, despite being a private company. Reports say that parent company ByteDance is looking at an IPO within the next year, where the company will be listed as TikTok Global on a US exchange.
  • Brewdog IPO: Craft-beer brewer BrewDog is a British company that has repeated its plans for an IPO on the London Stock Exchange at some point in 2021. The company previously announced its plans in 2018 but has been waiting for the right time to debut its shares to the public. BrewDog's IPO could value the company at over £1 billion.
  • Kraken IPO: American cryptocurrency exchange Kraken is expected to debut its shares on the stock market in 2022, being the second US-based crypto stock to register on an exchange. The company is reportedly tied between having a traditional IPO or using a special-purpose acquisition company (SPAC), although it may have too high of a value for the latter and therefore, it would be more likely consider a direct listing. Kraken is currently valued at around $4 billion but this could rise to $20 billion after its next funding round.
  • WeWork IPO: Shared workspace start-up WeWork officially filed for an IPO in 2019 but has since decided to take the company public through the SPAC process. The deal is expected to go ahead in Q3 of 2021 and will value the company at approximately $9 billion. The announcement comes after a troubled year of declining revenue due to the Covid-19 crisis, as the company was previously valued at $47 billion two years previously.
  • Cinch IPO: Cinch is an online used-car marketplace that launched in November 2020 but has already made sales rises of over 200% this year. It boasts the biggest supply of cars in the UK and is expected to raise £500m of new funding, which could value the company at over £5bn.
  • Cazoo IPO: Cazoo is a competitor and rival of Cinch in the online marketplace for used cars. The company has sold over 20,000 cars in the UK and is owned by tech entrepreneur Alex Chesterman, who has made a deal with a listed SPAC to float Cazoo's shares on the New York Stock Exchange, rather than following the traditional IPO route. This will likely take place at the end of April and could give the company a valuation of approximately $7bn.
  • Robinhood IPO: US stock and options trading app Robinhood is planning an IPO at some point in 2021. The company has grown its user base by a third this year and it could be potentially valued at around $40bn. Robinhood is planning on debuting on the NASDAQ exchange, a popular choice for technology companies.
  • Krispy Kreme IPO: American doughnut leader Krispy Kreme is planning on returning to the stock market five years after it was taken private. The company first went public in 2000 and was bought by a private investment company in 2016 after filing for bankruptcy. The company has been focusing on marketing efforts and re-branding throughout 2020.
  • MADE IPO: British online homeware brand Made.com is planning an IPO that could raise up to £100m when it lists on the London Stock Exchange. After reporting a 30% sales increase in 2020, the company is planning to expand its range of furniture, textiles and ceramics with the funding. MADE could be valued at around £1bn upon debut, as the pandemic has accelerated the e-commerce sector.
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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

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 our Dr Martens share price here.

  • 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 our Moonpig share price here.
  • 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 our Bumble share price here.
  • Roblox IPO: Online gaming platform Roblox had a direct listing in early March, floating its shares on the New York Stock Exchange. Roblox is the biggest mobile game in terms of revenue in the US, where users can create their own games on the platform. Its shares were suggested to start trading at $45 but shot up by 55% to $70 on its launch day, giving the company an overall valuation of approximately $40 billion. Trade on our Roblox share price here.
  • Coupang IPO: South Korea's equivalent of Amazon, Coupang is an e-commerce platform that delivered the biggest IPO in the US since Uber. Coupang is backed by Japanese holding company SoftBank and raised $4.6 billion in its IPO in early March. The company now has a market capitalisation of $84 billion. Trade on our Coupang share price here.
  • Vantage Towers IPO: Vantage Towers is Europe's largest mobile tower unit business and it is a subsidiary of Vodafone. The company went public on 18th March, raising around €2.8 billion with a listing on the Frankfurt Stock Exchange. Trade on our Vantage Towers share price here.
  • Deliveroo IPO: Deliveroo is one of the most popular takeaway and food delivery services in the UK, although it has strong competition from rivals JustEat and Uber Eats, which has only increased since the start of the pandemic in early 2020. The company debuted its shares on the London Stock Exchange at the end of March 2021 at a price of 330p, which was lower than the originally predicted 390p, valuing the business at around £7.5 billion. Trade on our Deliveroo share price here.
  • 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. Trustpilot raised $473m in its IPO in March 2020, giving the company an overall valuation of £1.08 billion. Its shares are listed on the London Stock Exchange. Trade on our Trustpilot share price here.
  • 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 debuted its shares directly on the NASDAQ on 14 April 2021 after a rally in cryptocurrencies. Coinbase's IPO helped the company to reach a market value of almost $100 billion upon listing, with an opening share price of $381, also raising the price of bitcoin to an all-time high. Trade on our Coinbase share price here.
  • UiPath IPO: UiPath is a global software company and market leader in robotic process automation. Its IPO, which happened on the 21st April, was one of the largest in history, leading to an overall valuation of $35.8 billion. UiPath has become of the fastest-growing software companies in recent years, with revenues up by 81% in 2020. UiPath stock is listed on the NYSE, where its share price closed up by 23% on its first trading day, from $56 to $69. Trade on our UiPath share price here.
  • Darktrace IPO: Cyber security technology platform Darktrace is a leader in its market and has over 40 offices worldwide. The company has grown substantially since it was founded in 2013 and serves clients such as Rolls-Royce and the NHS. Darktrace's share price shot up by 40% on its initial trading day from 250p to 350p on the London Stock Exchange, giving the company a valuation of over £1.7bn. Trade on our Darktrace share price here.
  • Honest Company IPO: Clean consumer goods company Honest Co, which is founded by Jessica Alba, offers a range of baby, beauty and household products that are described as natural, plant-based or chemical-free. The company debuted its shares on the NASDAQ exchange in May 2021, raising $412.8m. This brought the business a total valuation of over $1.44bn, floating its shares at a starting price of $16. Trade on our Honest Company share price here.
  • SYNLAB IPO: Synlab is a German medical diagnostics and laboratory services provider that has debuted its shares on the Frankfurt Stock Exchange at the end of April 2021. The company offered new shares worth €400m and existing shares worth €271m at €18 each, where Synlab's IPO helped the company reach a market value of around €4bn. Trade on our Synlab share price here.
  • Alphawave IPO: A leading global semiconductor company, Alphawave was founded in Toronto, Canada, but chose to float its shares on the LSE. The company raised over £500m with backings from investment managers such as BlackRock and Janus Henderson. Alphawave will move its HQ to London as part of the process. Upon debut, its shares slumped 22% to 310p, giving the company an overall valuation of around £2.45bn. Trade on our Alphawave share price here.
  • Squarespace IPO: Squarespace is an American website builder and hosting company that launched on the New York Stock Exchange on 19 May 2021. It registered approximately 40m shares for a direct listing and has a valuation of $6.5bn. Squarespace shares opened 4% down on its debut trading day, from a reference price of ;$50 to $48. Trade on our Squarespace share price here.
  • Oatly IPO: Swedish vegan dairy alternative brand Oatly listed on the NASDAQ exchange on 20 May 2021, giving the company a valuation of over $10 billion. 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. Oatly's share price climbed from an expected $17 to $22 on its first trading day, raising $1.4bn in the process.

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​.​

Disclaimer: 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.