How to request IPO shares | Robinhood

How to request IPO shares

IPO access lets you request shares at the IPO price before a stock is available to the general public. Once you have access, you can submit a request or conditional offer to buy (COB) for IPO shares from select companies from within the app. How to sign up for IPO access has more details.

How to request IPO shares

Once you have IPO access, you can request IPO shares with the following steps:

  1. Find an IPO that interests you
  2. Select I'm interested
  3. Review the checklist and confirm your eligibility
  4. Read the company’s prospectus to learn more, including potential risks
  5. Select Request shares
  6. Enter the details of your request
  7. Select Review
  8. Swipe up or select Submit
Note

You can only request shares after the underwriter sets the initial price range.

How is a COB different from a standard trade made on Robinhood?

A conditional offer to buy (COB) is similar to a buy order, except the COB remains pending and doesn’t become an active order until the IPO is priced and set for the initial public offering. You can edit or cancel your COB until the end of the confirmation window, after final pricing.

When you submit a request for shares with IPO access, you’ll be creating a COB. Then you can indicate the number of shares you hope to purchase. But keep in mind that a COB just means your order is eligible for an allocation of shares and doesn’t guarantee you’ll receive an allocation.

Before your COB can turn into an opportunity to purchase shares, the following must occur:

  1. The SEC must declare the company’s registration statement effective
  2. The final offering price must be within the price range at the time you submitted your COB

If you enter a COB and you’re allocated shares, your COB becomes an order and you’ll purchase those shares.

Note

If the final price is within 20% of the price range, you don’t need to worry about confirming your request. However, you’ll only be given until the end of the confirmation window to cancel before the offer is locked and unable to be adjusted.

How many shares can I get?

We work with the underwriter to receive a limited number of shares. We use the number of shares we receive, customer demand, and other factors to determine how many shares you'll get. You may get the full number of shares you requested, a partial amount, or none at all.

What if I don’t get all the shares I request?

If you don’t get any shares, or only a part of the amount you requested, any extra funds that were on hold in anticipation of buying the IPO shares will be returned to your buying power. For details, check out Why you might not get all the IPO shares you request.

Disclosures

IPOs can be risky and speculative investments, and may not be appropriate for every investor. For details, review our 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). The Robinhood Money spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. 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. RHF, RHY, RHC and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC and RHS are not banks. Securities products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. Cryptocurrencies held in RHC accounts are not covered by FDIC or SIPC protections and are not regulated by FINRA. RHY products are not subject to SIPC coverage but funds held in the Robinhood Money 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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