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Risks related to IPO investing

About the risks

Initial public offerings (IPOs) can be an exciting way to invest in a company's public debut, but they carry unique risks demanding a cautious approach. Newly listed stocks can be volatile. Share prices can drop dramatically once trading begins. There is a risk you may lose your whole investment.

Additionally, you won't know the exact price you are paying until the offer officially closes. While the prospectus provides an estimated price range, the final price isn't guaranteed, meaning you could end up paying more than anticipated.

Because of these risks, it is essential that you base your investment decision on the official prospectus. If you are at all uncertain if an IPO fits your financial goals, you should always seek independent financial advice before investing your capital.