Educational reference material. No recommendations, no predictions — just the mechanics, the risks and how to check who you are dealing with.
The company raises from venture and growth investors. Employees and early backers sometimes sell in secondary transactions, which produce the 'pre-IPO' price marks you see quoted.
Auditors, bankers and lawyers prepare the accounts and the offering. Nothing is public and no date is certain at this stage.
In the US the company files an S-1 with the SEC. This is the first document with audited numbers and risk factors, and it is published on SEC EDGAR.
The company markets the deal and publishes an indicative price range. The range can move up or down before pricing.
The night before trading, the final offer price and deal size are set. Allocations go mostly to institutions; retail access depends on your broker.
Shares open on the exchange. The opening price can be far above or below the offer price, and early volatility is normal.
IPO investing puts your capital at risk. These are the risks people most often underestimate.
A reported listing window is not a commitment. Deals get delayed, resized or shelved when markets turn.
Registering interest anywhere — including with a broker — does not guarantee you receive shares at the offer price.
Plenty of high-profile listings traded below their offer price within weeks. You can lose money quickly.
Newly listed companies have short public track records and thin analyst coverage, so valuation is harder.
When insider lock-ups expire, additional supply can weigh on the price.
Pre-IPO prices from secondary platforms reflect small, infrequent trades and are not a valuation of the whole company.
Before sending money to any firm that offers IPO access:
Any firm named in our material is listed for reference only and is not an endorsement. See our full disclaimer.