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How to buy IPO in Australia

Published by:
May 16, 2022 9:43 am

Are you looking to invest in a company that is about to take the plunge in stock market trading? Then investing in an IPO is possibly the best choice for you to earn some passive income. 

But surely, you are wondering what is meant by it anyway? And how to buy IPO in Australia? In this article, you will learn exactly how that works!

What is an IPO?

We talk about an IPO when a company makes its shares available for public trading on the stock exchange for the first time. In this way, potential investors get the opportunity to participate financially in this company.

Once the company is on the stock exchange, the management has the choice of how many shares to sell on the stock exchange. 

How is the price of a share created when going public?

Before you learn how to buy an IPO in Australia, you'll want to know how expensive the stock will be in the first place. Numerous experts determine how much the stock of the newly listed company is worth.

These experts are usually business consultants, investment bankers and stockbrokers. They also guide the process of going public. So, there is already a lot of experience with stock market trading behind it!

How does an IPO actually work?

As soon as a certain company wants to offer its shares for trading on the stock exchange, it has to consider some steps beforehand. Before this is done, no investor needs to ask himself the question of how to buy in Australia IPO.

First, the company must indicate what financial goals it wants to achieve. It must also state what the value of the securities will be. We have already explained how this works in the last paragraph.

Once the company completes all these tasks, the company files all this information with the Australian Securities and Investment Commission. The prospectus contains all the information you need to know if you want to buy shares from this exchange-traded company. After all, the purpose is to motivate potential shareholders to buy shares in this company.

What you should know before investing in IPO

To ensure that you do not take unnecessary financial risks, you must obtain a range of information. These can be found in the prospectus for the IPO of your favourite company.

One of the essential information is the growth prospects in the future. But also, how the expected development after the start on the stock exchange looks like, should play a role in your purchase decision.

Overall, it is your personal decision whether it is worth investing in an IPO

Advantages and disadvantages of IPO

If you wonder how to buy IPO in Australia, you should definitely be aware of the advantages and disadvantages of investment. After all, investing in a new company starting on the stock market is not the best choice for every investment strategy.

The big advantage with an IPO is the great growth potential. You can get a lot of money back after just a short time. Since a good IPO already attracts numerous interested investors to participate utilizing shares, this potential is naturally much greater regarding an already well-known company.

On the other hand, you are also taking a big financial risk with your investment. It is this financial risk that you should consider if you are interested in buying an IPO. If the share price on the stock market does not develop as you and the company had hoped, you will lose a lot of money. Therefore, only invest amounts that you are not absolutely dependent on!

Where can you buy IPO in Australia?

In Australia, there are two providers that we can recommend to you as an IPO investor. Both platforms offer you the opportunity to search for companies that have high-growth potential.

The first website is Preipo Hunter. When you sign up on this site, you get early access to helpful information about when a company is going public. 

The next platform we can recommend is IPO WISE. This website is experienced information and research company. Some of the largest financial institutions in the world are among IPO WISE's clients. As a result, you will also benefit from the knowledge of successful shareholders and take a lower risk.

Visit and download the 2022 IPO Guide, or sign up to if you are interested in SpaceX.

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The information provided in this article is for information purposes only. This article and its content are not, and should not be deemed to be an invitation to engage in any financial activity. This article should not be construed as advice or a personal recommendation. We are not authorised and regulated by any Financial Authority. The content of this article is not authorised by any financial authority. Reliance on this promotion for the purpose of engaging in any financial activity may expose an individual to a significant risk of losing all of the funds.

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