Pre-IPO orders | Robinhood

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

Trading stocks with a (recent) IPO can be risky and speculative investments, such with high volatility, may not be appropriate for every investor. Even when buying through a limit order, the price may drop significantly after the buy. You must consider the risks involved before making investment decisions. For more details about IPOs, review the Initial Public Offering Risk Disclosures.

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All investing involves risk.

Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker-dealer (member SIPC) and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC). Cryptocurrency services are offered through Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840). Review a list of RHC licenses for more information.The Robinhood Money spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Review a list of our licenses for more information. Credit card products are offered by Robinhood Credit, Inc. ("RCT") (NMLS ID: 1781911 and issued by Coastal Community Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc.

The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard® International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

RHF, RHY, RHC, RCT, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC, RCT, and RHS are not banks. Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. RHC isn’t a member of FINRA and accounts are not FDIC insured or protected by SIPC.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Robinhood Financial's Fee Schedule to learn more.

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