Reddit IPO
Reddit is due to list on 21 March 2024. Explore how you can get exposure to the company's shares with Australia's No.1 CFD provider.1
Start trading today. For account opening enquiries call 1800 601 799 between 9am and 6pm (AEDT) weekdays, or email newaccounts.au@ig.com.
Contact us: 1800 601 799
Start trading today. For account opening enquiries call 1800 601 799 between 9am and 6pm (AEDT) weekdays, or email newaccounts.au@ig.com.
Contact us: 1800 601 799
Why trade the Reddit IPO with us?
Trade pre-IPO
Speculate on our exclusive Grey Market CFDs, available before popular listings2
Speculate on Reddit
Buy or sell Reddit shares using CFDs after the IPO
Buy Reddit shares
Invest in Reddit with a share trading account after the IPO3
Buy Reddit shares on the day of the listing
Share trading
Buy Reddit shares once the company lists, paying zero commission and a currency conversion fee of just 0.7%.4
Learn more about share trading with us.
Trade on the Reddit share price
We’ll offer Reddit shares to trade with CFDs on the day of their IPO. Once the market has opened, the shares will be available for you to buy.
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 speculating on the price movements of the company’s shares with CFDs. Since you won’t own the underlying assets, you can speculate 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 magnify 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.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Buying 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,3 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, if applicable, according to how many shares in the company you own.
Open an account in minutes
Open an account in minutes
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
Open an account in minutes
Open an account in minutes
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
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 pre- and 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 share trading and CFD trading
See a list of upcoming IPOs from around the world
1 Number 1 in Australia by primary relationships, CFDs & FX, Investment Trends November 2023 Leveraged Trading Report.
2 We do not offer grey markets on all IPOs.
3 When investing with us, you’ll do so via our share trading platform using our custodial model. This means that we manage, hold and safeguard securities you choose to buy and sell on your behalf. Via our custodial model, you’ll be able to buy and have a stake in actual assets – for example, shares in an ASX 200-tracking ETF or ASX 200-constituent company. You’ll also be entitled to dividends if any are paid, and granted voting rights if applicable.
4 Note for multi-currency accounts: These figures apply to clients who opt for the default setting of 'instant currency conversion'. Clients who choose to convert currencies manually will pay commission of 2 cents per share with a minimum charge of $10 on US stocks and, for European markets, we charge £10 / €10 per trade or 0.1%, whichever is higher. Other fees and charges may apply, please refer to https://www.ig.com/au/share-trading/charges.
