A private entity raises capital by selling the shares of their company publicly to the institutional investors and also retail investors via a new stock insurance known as an IPO (Initial Public Offering). The pros of investing in an initial public offering are that investors get the benefit of choosing a potentially underpriced stock early and before brokerage takes the advantage of it. But how do you know that an IPO has been released? In this article, we will see how you can track upcoming IPOs to take the most advantage out of them.
Sources To Track Upcoming IPOs
It is crucial for investors to track upcoming IPOs 2022 for capitalizing on the available opportunities. We will discuss 6 sources for tracking all the upcoming IPOs.
1. Exchange Websites
This is the most convenient source to track upcoming IPOs. Some of the most reliable sources of information on forthcoming IPOs are the exchange websites. For instance, NASDAQ and the New York Stock Exchange (NYSE) both maintain dedicated portions for news about IPOs. NASDAQ has a dedicated portion known as the “Upcoming IPO” and NYSE has a section called “IPO Center”. Sourcing data directly from the exchange websites is wise because it is reliable, official, and will be the most up-to-date data.
Exchange websites will also offer access to the official IPO DRHP. The disadvantage of depending on exchange websites is that you may not receive the most recent news as exchanges only update their websites after appropriate verification. Another restriction of using exchange websites is that they may only offer information about the latest issues that will be listed on their exchange. Investors must thus check varied exchange sites to receive a sense of all IPO chances.
2. Google News
Doing a search on Google News with related search terms like “IPO” can provide some of the most up-to-date news, that include market commentary, analyst opinions, and other developments for any upcoming IPO offering.
Google News is one source for all global IPOs, regardless of the exchange or nation where an IPO is listed.
3. Yahoo Finance
The finance portal of Yahoo has a dedicated IPO division with details on the IPO date, symbol, price, division, and links to IPO profiles and news items. It also provides performance tracking of the last IPOs. This is another most effective source to track upcoming IPOs.
4. IPO Monitor
IPO Monitor is a committed website that offers IPO-specific news for tracking upcoming IPOs. Apart from the usual IPO data, it also offers wider market-level statistics under the section known as “Current IPO Market Dashboard.” This section offers data about the present number of IPOs filing, top performers, and IPO withdrawals.
5. IPO Scoop
6. Renaissance Capital IPO Center
Renaissance keeps a dedicated IPO division that offers a weekly upcoming IPO calendar. It provides data on companies going public in 2022. It also provides other related content like articles about the biggest U.S. IPOs and the biggest global IPOs, along with dedicated sections like “IPO Poll” and “IPO News”.
Advantages And Disadvantages Of Investing In An IPO
Investing in an IPO offers several benefits: picking potentially underpriced companies at the beginning, commission-free stock positions, and potentially gain from price shifts on a listing day (and in the mid- to long-term). Investing in an initial public offering can allow ordinary investors to receive in early on a hot company. Just think if you had bought into the IPOs of entities like Microsoft, Apple, Amazon, or Facebook.
There are, however, some disadvantages to be aware of with IPOs. Since they are very new stocks, there is no price history or basic analysis to be conducted on financial statements. As an outcome, there can be uncertainty around the fair value of a lately-listed stock. As a result, price fluctuations can be higher than usual. Moreover, if many investors are piling into a trending IPO, the value can be pushed to artificially bigger levels in the first days of trading, only to see them fall thereafter.
Investors should judge every IPO individually and as per the prospectus of the entity going public, as well as their own financial scenarios and risk tolerance ability.
- Become an early investor
- Can potentially purchase undervalued shares early
- Generally no commissions on IPOs
- Little value or financial history yet
- Higher fluctuations and risk compared to established stocks
- IPO value may be artificially bid up
- Not all IPOs available to all brokerages
An IPO (initial public offering) takes place when an entity issues shares to the public for trading for the very first time. IPOs are a way for the latest companies to raise equity capital from investors and are often thought of as an exit strategy for early investors who can sell their shares at a premium. But how do you track upcoming IPOs? The above article spoke about the 6 main sources that can help you to track all the upcoming IPOs easily.