Reddit IPO
Reddit is due to list on 21 March 2024. Explore how you can get exposure to the company's shares with the world's No.1 choice for CFD trading.1
Start trading today. Call +971 (0) 4 5592108 or email sales.ae@ig.com. Our sales team is available from 8:00am to 6:00pm (Dubai time), Monday to Friday.
Contact us: +971 (0) 4 5592108
Start trading today. Call +971 (0) 4 5592108 or email sales.ae@ig.com. Our sales team is available from 8:00am to 6:00pm (Dubai time), Monday to Friday.
Contact us: +971 (0) 4 5592108
Why trade the Reddit IPO with us?
Buy Reddit shares on the day of the IPO
Buy Reddit shares on the day of the listing
Trade on the Reddit share price
You can also trade on Reddit using CFDs with us
Buy Reddit shares on the day of the listing
Stock trading
Buy Reddit shares on the day of the IPO with no commission.2 You can buy US shares with us for $0 up to 50 trades per month.
Learn more about stock trading with us.
Trade on the Reddit share price
We’ll offer Reddit shares to trade with derivatives on the day of their IPO. Once the market has opened, the shares will be available for you to buy. You can use CFDs to take a position on share price movements.
What you need to know about the Reddit IPO
Our analyst's view on the Reddit IPO
By Angeline Ong
Reddit is aiming for a valuation of some £6.5 billion when it lists on 21 March 2024.
Reddit already has tens of millions of users. The company has never made a profit, but sales grew 20% in the last year, showing Reddit can attract advertisers.
But Reddit relies heavily on search engines like Alphabet's Google for customer acquisition, and volunteers around the world to moderate its content.
This means regulators will be watching Reddit more closely, especially when it's a public company.
The difference between trading and investing in the Reddit IPO
Trading Reddit shares with us means that you’ll be predicting on the price movements of the company’s shares with CFDs. Since you won’t own the underlying assets, you can take a position on both rising and falling share prices.
CFDs are leveraged products, which means that you can open a position with a deposit – known as margin. Trading with leverage can increase both your profits and your losses, because they’re calculated using a position’s full market exposure, not just the margin requirement to open it.
Learn more about the impact of leverage on your trading
Investing in shares works differently. Leverage isn’t available, so you’ll need to provide the full cost of the position upfront. This’ll give you direct ownership of the shares, and you’ll earn a profit if the share price rises above the price at which you opened your investment.
You’ll also receive shareholder rights, like voting privileges if the company grants them. Plus, you’ll be eligible to receive dividends according to how many shares in the company you own.
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Demo accounts are only available for CFD trading.
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Fast execution on a huge range of markets
Enjoy flexible access to 17,000 global markets, with reliable execution
Deal seamlessly, wherever you are
Trade on the move with our natively designed, award-winning trading app*
Feel secure with a trusted provider
With more than 45 years of experience, we’re proud to offer a truly market-leading service
*Best Finance App, Best Multi-Platform Provider and Best Platform for the Active Trader as awarded at the ADVFN International Financial Awards 2024.
Demo accounts are only available for CFD trading.
Open a stock trading account now
Open a stock trading account now
Fast execution on a huge range of markets
Enjoy flexible access to 17,000 global markets, with reliable execution
Deal seamlessly, wherever you are
Trade on the move with our natively designed, award-winning trading app*
Feel secure with a trusted provider
With more than 45 years of experience, we’re proud to offer a truly market-leading service
*Best Finance App, Best Multi-Platform Provider and Best Platform for the Active Trader as awarded at the ADVFN International Financial Awards 2024.
How do IPOs work?
IPOs work by having a company put its shares up for sale to the public. Some common reasons for this include seeking to raise capital for business growth, decreasing or settling debts, positioning itself to better attract and retain talent, or increasing liquidity.
The IPO process starts off with a detailed audit of the company by an external resource – it must be conducted taking all the company’s financials into consideration. Next, a registration statement needs to be prepared by the business and filed with the appropriate exchange commission. If the commission grants approval, the company can then list a set number of shares at a price determined by an investment bank.
Explore what IPOs are or find out how to trade post-listing
FAQs
What are the risks of trading an IPO?
All trading activity is risky – IPOs come with additional risks, including:
- Missing important company information that might impact share prices, eg pending legal cases and intellectual property that is not patented
- Little to no trading track record to base decisions on
- Elevated market expectations that do not materialise
- Companies not meeting their target market cap
- Before committing to any trade, it is important that you have all the facts that you need. In the case of trading IPOs, you can use company prospectuses, admission documents and other information to stay up-to-date. By staying informed, you can avoid risks that could affect your position in a trade.
Try these next
Learn how to take a position on an IPO with us
Compare the features between stock trading and CFD trading
Learn how to make the most of IPOs
1 Based on revenue (published financial statements, 2022).
2 Should you place over 50 trades on US shares, in a given month, IG reserves the right to charge you $5 per trade.
Contact us
New client: 00971 (0) 4 559 2108 or sales.ae@ig.com
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