An IPO, which stands for “initial public offering,” is an event when a private company first offers its stock shares to the general public. To monitor upcoming IPOs, you can refer to global market exchange websites such as NYSE or NASDAQ, or you can subscribe to IPO alert services for a monthly fee. Investing in IPOs can pose a great investment opportunity when the proper due diligence is done on the underlying company.
- IPO stands for “initial public offering” and is the term used to refer to when private companies offer their company stock to the general public for the first time.
- Investing in IPOs can be a great opportunity, but it comes with added risk and price volatility.
- You can find out upcoming IPOs via informative websites such as NYSE, NASDAQ, Yahoo Finance, and Google Alerts.
What Is an IPO?
When private companies offer shares of its stock to the general public for the first time, it’s called an IPO. A private company looking to go public will work with a bank to determine how many shares and at what price per share the company will begin trading on the public markets.
The Benefits of IPO Investing
The biggest benefit of investing in an IPO is the opportunity to buy into a company at a lower price and profit from its long-term growth. Consider some of the following companies and their growth since they’ve IPO’d:
|Company||IPO date||IPO opening price per share on public markets||Price per share as of July 23, 2021||Total growth (%)|
|Zoom Video Communications (NASDAQ: ZM)||April 12, 2019||$65.00||$359.23||452.66%|
|Peloton Interactive, Inc. (NASDAQ: PTON)||September 26, 2019||$27.17||$121.55||347.37%|
|Roku, Inc. (NASDAQ: ROKU)||September 28, 2017||$15.80||$431.61||2,631.71%|
|Pinterest, Inc. (NYSE: PINS)||April 18, 2019||$24.62||$76.91||223.83%|
NOTE: Share prices include adjustments for stock splits.
Had you invested just $1,000 in any of these companies on its first day as a publicly listed company, your $1,000 investment would be worth anywhere from $2,238 to $26,317 today. Other benefits of investing in IPOs include portfolio diversification and having part ownership in a potentially industry-changing company.
New York Stock Exchange
The New York Stock Exchange (NYSE) is one of the world’s largest stock market exchanges. You can see past, present, and future IPOs via its IPO Center. Here, you can view expected filings, recent IPOs, IPO pricing statistics, and visuals of chargers and graphs of past IPOs via its IPO Backlog section.
The NASDAQ is also one of the world’s largest stock market exchanges and provides reliable information for upcoming IPOs. It provides info on upcoming IPOs via its IPO Calendar with statuses of IPO filings such as:
- Upcoming: Upcoming IPOs and their respective listing dates
- Priced: IPOs that have determined their price per share
- Filings: A list of previously listed IPOs
You can view IPOs here that will be listed on both the NASDAQ and the NYSE.
Yahoo Finance can be a great source for tracking upcoming IPOs listed on nearly all global stock exchanges, such as NYSE, NASDAQ, London Stock Exchange (LSE), Australian Stock Exchange (ASX), and many others. Via its IPO Calendar, you can view past and upcoming IPOs with additional details such as the exchange it will be listed on, its status, the number of shares, and potential price ranges.
Google News Alerts
Google Alerts is a great way to keep track of upcoming IPOs. By setting up an alert for certain keywords, like “upcoming IPOs” or “IPO,” Google will track the web for news and content related to those keywords and email you regularly with updates. Here’s how to set up a Google Alert for upcoming IPOs:
- Go to Google Alerts to enter your tracked keywords.
- Type in “IPO” and other related keywords to add to Google Alerts.
- Select settings to customize how you receive your alerts.
Based on your selected notification parameters, you will receive regular notifications via email of new content across the web related to your chosen keywords.
Subscription IPO Alert Sites
You can stay informed of upcoming IPOs to invest in by subscribing to IPO alert websites. For a small fee, you will get details on upcoming IPOs and their current statuses. Some popular IPO alert sites to consider are:
- IPO Scoop: Paid subscribers get access to an IPO calendar, IPO documents such as S-1 filings, new pricings, popularity ratings, email alerts, and exclusive Friday-morning emails with a summary of the IPOs for the prior week. Cost: $19.95 per month, $199.50 per year.
- IPO Monitor: For a small monthly fee, you get access to exclusive IPO calendars, pricings, IPO news, important dates such as lockup expirations, performance metrics, industry analysis, and quarterly reviews. Cost: $29 per month, $290 per year.
- Renaissance Capital: Subscribers get access to news about upcoming IPOs, exclusive educational material about IPOs, IPO stats and status timelines, and customized email alerts. Cost: Free (IPO Center), $97 per month or $948 per year (IPO Pro).
To sign up for these subscription services, create an account with your email, password, contact information, and payment details. You have options to pay monthly or annually.
Frequently Asked Questions (FAQs)
Are IPOs a good investment?
As is with most thoroughly researched investment strategies, IPOs can pose great investment opportunities, but may not be suitable for all investors. Before you invest in an IPO, be sure to conduct some due diligence to understand the company you are investing in. Due to the lack of information available for newly listed companies, it can be difficult to find the fundamental facts of an underlying IPO investment. The best place to find relevant information about an upcoming IPO is through the company’s documents filed with the SEC, such as the S-1 statement and preliminary prospectus.
Are IPOs profitable?
Whether an IPO is a profitable investment is dependent on your due diligence on the underlying company. Picking a company with a strong industry moat, favorable financials, and great leadership are just a few positive characteristics to look for in a great equity investment such as an IPO. But remember: IPO annual returns can vary widely year to year.
Can you buy an IPO before it goes public?
Yes. However, you need to be a client of the underwriting bank or its affiliates, or a trading app that offers IPOs, to directly participate and purchase shares of the IPO before they are listed on the public markets.