Investing in an initial public offering (IPO) has the advantage of allowing investors to invest in a possibly undervalued business early on, before brokerages establish big equity positions. It’s critical for IPO investors to keep track of any upcoming IPOs in order to take advantage of new investment opportunities that arise.
Here are 5 upcoming IPOs to keep an eye on this week.
5 Upcoming IPOs This Week
For many years, the primary way for a company to access the public markets was through an initial public offering (IPO). The demand for new stock offerings has remained robust, with a number of IPOs seeing price increases on the first day.
These five upcoming initial public offerings (IPOs) were reported last week.
Amplitude, Inc. (NASDAQ Global Select: AMPL). This is a product intelligence platform that enables businesses to use consumer data to create amazing product experiences and expand their businesses in a methodical way. For modern product and development departments, Amplitude is the cross-platform intelligence industry standard.
Amplitude, Inc intends to offer 35,398,389 shares with a target price of $35.41 on the week of September 29th.
Warby Parker Inc.
Warby Parker Inc. (NYSE: WRBY). This is a New York City-based online retailer of prescription glasses and sunglasses. Warby Parker mostly sells its items online, but the company also has retail stores throughout the United States and Canada.
Warby Parker Inc intends to offer 77,741,942 shares with a target price of $24.53 on the week of September 29th.
Allvue Systems Holdings, Inc.
Allvue Systems Holdings, Inc. (NYSE: ALVU). This is a well-known provider of alternative investment software solutions. Following the IPO, the company anticipates having 50.13 million Class A shares and 35.09 million Class V shares outstanding.
Allvue Systems Holdings, Inc intends to offer 15,300,000 shares with a target price between $17-$19 on the week of September 29th.
Olaplex Holdings, Inc.
Olaplex Holdings, Inc. (NASDAQ Global Select: OLPX). This firm is a science-based, technology-driven beauty brand with an aim to improve its customers’ hair health. Olaplex focuses on a new type of hair care known as bond-building which is the act of protecting, strengthening, and replacing broken hair links.
Olaplex Holdings, Inc intends to offer 67,000,000 on the week of September 30th with a target price between $14-$16.
First Watch Restaurant Group
First Watch Restaurant Group (NASDAQ Global Select: FWRG). The First Watch Restaurant Group is a Florida-based eating brand centered in Bradenton. First Watch Restaurants franchise locations can be found in 15 states.
First Watch Restaurant Group intends to offer 9,459,000 shares on the week of September 27th with a target price between $17-$20.
How To Invest in IPOs
Investing in IPOs can be done in a few simple steps. Follow these steps in order to get started investing in some of the upcoming initial public offerings.
1. Select a Brokerage
First, you need to determine which brokerage would be best suited for you. Here are a few of the most popular options when it comes to investing in IPOs.
- eTrade — Free Stock Trading – Award winning platform and mobile app!
- TradeStation — Also Free stock trading – intuitive stock trading tools. Cash bonus for new accounts (conditions apply).
- Sofi: There are no minimums for participation, and any SoFi member with an Active Investing account is eligible. Sofi has a $3,000 minimum balance requirement across all accounts and a stringent 30-day anti-flipping policy. To participate in an IPO, SoFi costs a minimum of $3,000 in capital.
- Fidelity: To acquire IPO shares, you must first create an account with Fidelity and confirm that you fulfill Fidelity’s IPO eligibility requirements. To participate in an IPO, Fidelity requires liquid funds varying from $100,000 to $500,000.
2. Open Your Trading Account
To begin investing in IPOs, you must first open a brokerage account. After deciding on the best brokerage for you, you must open an account with them.
3. Deposit Funds
Once you’ve linked an accepted payment method to your account, you’ll be able to deposit cash to purchase IPO shares. You must determine how many shares to purchase when your account has been fully activated.
4. Select an IPO Stock to Invest in
In order to select an IPO to invest in, you will have to conduct research online to learn about the organization’s financial performance, the current news, and the sustainability of its sector.
5. Purchase Your Selected IPO Stock
Use the ticker symbol to find the stock and do some research before determining if it’s a smart investment for you. On the broker’s order form, you will enter the symbol and the quantity of shares you desire to acquire.
6. Monitor Your Performance
It’s important to monitor the performance of all of your investments. For monitoring IPOs, several brokerages provide IPO-specific news. IPO investors may stay up to date on future IPOs, general market sentiment, and related news.
Should You Invest in IPOs?
Your current portfolio may consist of blue chip stocks, growth stocks, index funds, or other types of equities. It is possible that you are considering investing in some of the initial public offerings (IPOs) that have been in the news this week to add to your portfolio.
If you’re considering investing in an initial public offering (IPO), but don’t know which one would be the best to start with, speak with a financial advisor today.
Frequently Asked Questions
A private business can obtain money by selling shares to investors in a stock issuance known as an initial public offering (IPO). Investors gain from the ability to select a possibly underpriced stock early in the process.
When a firm decides to seek funds through an IPO, it does so only after thorough research to ensure that this maximizes the yields of initial adopters while also raising the greatest capital for the business. As a result, when the IPO decision is made, the possibilities for future development are expected to be strong.
IPOs are attractive to investors because of the volatility of their price swings. This can result in huge gains on occasion, but it can also lead to significant losses. Furthermore, investors should evaluate each IPO based on the expectations of the firm going public.
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