Universal Music IPO
Explore how you can get exposure to Universal Music’s shares before, during and after its IPO (initial public offering) with the world’s No.1 spread betting and CFD provider.1
Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening an account.
Why trade the Universal Music IPO with us?
Access grey markets pre-IPO
Speculate on a company’s market cap at the end of its first trading day with our exclusive grey markets2
Buy stock at the IPO price
Receive a stock allocation on the primary market at the same time and price as institutional investors
Trade or invest in Universal Music shares
Take your position on Universal Music shares – buy, sell or short once they are listed on the secondary market.
Buy underlying Universal Music stock
Invest in Universal Music and own physical stock – making you a shareholder
Pre-listing
Grey market
Our grey market prices are based on an estimation of a company’s market cap at the end of its first trading day. Our exclusive grey markets let you take a position on this estimation.
If a grey market is offered for Universal Music, you can:
- ‘Buy’ (go long) if you predict that the market cap will exceed the price we quote
- ‘Sell’ (go short) if you predict that the market cap will be less than the price we quote
IPO subscriptions
If offered for Universal Music, you could subscribe to the IPO ahead of the listing. If the company grants retail investors access to its shares, your stock will be allocated at the same time and price as institutional investors.
What are IPO subscriptions and how do they work?
Post-listing
We’ll offer Universal Music shares on the day of their IPO. Once the market has opened, the shares will be available for you to buy. You can choose to:
- Use CFDs and spread bets to speculate on share price movements
- Buy and assume ownership of shares using share dealing
The difference between trading and investing in Universal Music shares
Trading Universal Music shares with us means that you’ll be speculating on the price movements of the company’s shares with spread bets or CFDs. Since you won’t own the underlying assets, you can speculate on both rising and falling share prices.
Spread bets and 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.
Discover more on how trading differs from investing
Open a share trading account in minutes
*Demo accounts are only available for spread betting and CFD trading.
Open a share trading account in minutes
Fast execution on a huge range of markets
Enjoy flexible access to 15,000+ 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 50 years of experience, we’re proud to offer a truly market-leading service
*Demo accounts are only available for spread betting and CFD trading.
Open a share trading account in minutes
Open a share trading account in minutes
Fast execution on a huge range of markets
Enjoy flexible access to 15,000+ 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 50 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.
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1 Based on revenue (published financial statements, 2023).
2 We do not offer grey markets on all IPOs.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
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