A private company can raise capital by selling shares publicly to institutional investors and retail investors through a new stock issuance, called an initial public offering (IPO). The advantage of investing in an IPO is that investors get the benefit of picking a potentially underpriced stock early and before brokerages take large stock positions. It's important for IPO investors to track upcoming IPOs in order to capitalize on available opportunities. Below are seven sources for tracking upcoming IPOs.
- A private company can raise capital by selling shares publicly to institutional investors and retail investors through a new stock issuance, called an initial public offering (IPO).
- Investing in an IPO provides many benefits: commission-free stock positions, picking potentially underpriced companies at the start, and potentially profiting from price jumps on listing day (and in the mid- to long-term).
- IPO investors can track upcoming IPOs on the websites for exchanges like NASDAQ and NYSE, and these websites: Google News, Yahoo Finance, IPO Monitor, IPO Scoop, Renaissance Capital IPO Center, and Hoovers IPO Calendar.
Tracking Upcoming Initial Public Offerings (IPOs)
- Exchange Websites - Some of the most reliable sources of information on upcoming IPOs are exchange websites. For example, the New York Stock Exchange (NYSE) and NASDAQ both maintain dedicated sections for IPOs. NASDAQ has a dedicated section called "Upcoming IPO" and NYSE maintains an "IPO Center" section. Sourcing information directly from the exchange websites is prudent because it's official, reliable, and will be the most up-to-date information. Exchange websites will also provide access to the official IPO prospectuses. The drawback of relying on exchange websites is that you may not get the most recent news because exchanges only update their sites after proper verification. Another limitation of using exchange websites is that they may only provide information about the issues that will be listed on their exchange. Investors must thus check different exchange sites to get a sense of all IPO opportunities.
- Google News - Performing a search on Google News with relevant search terms like “IPO” can offer some of the most up-to-date news items, including analyst opinions, market commentary, and other developments for any upcoming IPO offering. Google News is a single source for all global IPOs, regardless of the exchange or country where an IPO is listed. You can also create customized news alerts for the term “IPO” to get all the updated news delivered directly to your mailbox or RSS feed.
- Yahoo Finance - Yahoo's finance portal has a dedicated IPO section with details on the IPO date, symbol, price, and links to IPO profiles and news items. It also offers performance tracking of past IPOs.
- IPO Monitor - IPO Monitor is a dedicated website that provides IPO-specific news for tracking IPOs. Apart from the usual IPO information, it also provides broader market-level statistics under the section called “Current IPO Market Dashboard.” This section provides information about the current number of IPOs filing, IPO withdrawals, and top performers. IPO Monitor also offers a subscription-based service that provides subscribers with dedicated research reports on IPOs.
- IPO Scoop - The website IPOScoop offers information related to upcoming IPOs. Paid subscribers also get access to SCOOP's ratings for upcoming IPOs.
- Renaissance Capital IPO Center - Renaissance maintains a dedicated IPO section that has a weekly calendar for IPO offerings. It also offers other related content such as articles about the largest U.S. IPOs and the largest global IPOs, in addition to dedicated sections like “IPO News” and “IPO Poll."
Benefits of IPO Investing
Investing in an IPO offering provides many benefits: commission-free stock positions, picking potentially underpriced companies at the start, and potentially profiting from price jumps on listing day (and in the mid- to long-term). IPO investors can keep track of upcoming IPOs, overall market sentiment, associated news, and expert opinions by using these seven sources.