Taking part in a company's stock market debut used to be reserved for large funds and institutional investors. With Bitso, you can access US company IPOs at the offering price, directly from the app.
What is an IPO
An IPO (Initial Public Offering) is the process by which a private company offers its shares to the public for the first time. It's the moment the company goes from being privately held to trading on the stock market, and anyone can invest in it.
Before an IPO, only institutional investors like venture capital funds have access. With the IPO, that opportunity opens up to everyone.
How to participate in an IPO on Bitso
Before participating, check that you meet the requirements. Review the restrictions and eligibility for IPOs.
Bitso gives you access to the US IPO primary market through Alpaca, our regulated partner in the United States.
- Find the IPO you're interested in under the "Markets" section of the app. You can review the company's business model, leadership team, and financials in the public prospectus available on the same screen.
- Enter the amount you want to commit in USD and submit your request.
- Wait for allocation. We'll notify you with the result before trading begins.
The first time you participate in an IPO, you'll need to confirm a few regulatory requirements. It's a quick process.
What price your order executes at
When you submit a request, you're not buying shares at that moment. Your order executes at the final offering price, which is confirmed close to the start of the IPO. This price can differ from the price at which the stock starts trading on the secondary market.
How to cancel or modify your request
You can cancel or modify your request, but only within a 60-minute window that opens close to the start of the IPO. We'll notify you when it's available.
During those 60 minutes, you can go into the app and change your requested amount or cancel it entirely. Once the window closes, your request is confirmed and you can't make changes.
When this window opens depends on each IPO's process and can vary from case to case.
Risks to keep in mind
- The price can drop after the debut. There's no guarantee the stock will rise on its first trading day. The market price can end up below the offering price.
- Allocation isn't guaranteed. You can submit a request and receive no shares if demand exceeds the shares available.
- These are higher-volatility instruments. Companies that just went public usually have less public track record, which can lead to sharper price swings.
Only participate with what you're willing to risk.