Pre-IPO orders

You can place orders for certain stocks before their initial public offering (IPO) using your Robinhood app.

Before you begin

An initial public offering (IPO) is a company’s first sale of stock to the public.
We offer pre-IPO orders for a small selection of stocks, and won’t support pre-IPO orders for every company that lists on the market.
These orders are limit orders only, which means we can’t guarantee your order will get filled.

How it works

We typically allow our customers to place limit orders to purchase shares of IPOs on their opening day around 8 AM ET. If you place an order, we’ll send it to our execution venue the morning of the IPO. You won't have to worry about paying more than you want because your order won't execute above your limit price.

Private placements

Keep in mind these aren’t pre-IPO stocks or private placements, and you’re not participating in the IPO. We're simply providing you the convenience of entering your orders before the morning of the IPO. We can’t execute your order until the stock crosses, or begins officially trading publicly.

Estimated price

The estimated price we provide is based on the company’s preliminary public SEC filings. The information in the filings isn't necessarily complete, and it may be changed. The estimate isn’t meant to be used as a guideline for the market value of the company.

When to expect a fill

Stocks don't always begin trading at market open on the day of their IPO. Expect delays while the exchange processes all of the orders relating to the new stock. You may not have your order filled until later in the day, so don't be alarmed if your order isn't filled right at the market’s open.

Volatility and buying power

Newly public stocks are usually more volatile than more mature stocks. Prices may change quickly, and your order may not be filled even if your order’s limit price is at or above the displayed price. Because of this volatility, you can’t use IPO stock for the first 30 days as collateral for margin investing.

Disclosures

Investing in IPOs is speculative and carries significant risk and may not be appropriate for every investor. IPO shares can experience substantial price volatility once trading begins. The initial market price may be considerably higher or lower than the IPO price. As a result, you may experience an immediate gain or loss when trading starts, and you could lose some or all of your investment.. For details, review our Initial Public Offering Risk Disclosures.

Was this article helpful?

Reference No. 4219456

Still have questions? Contact Robinhood Support