With Initial Public Offerings on the rise, Maxim Manturov, Head of Investment Research at Freedom Finance Europe, explains that for investors to capitalise on the IPO craze, it’s imperative they utilise the platforms that already offer them on the market.
“With over 480 Initial Public Offerings (IPOs) hitting the US stock exchange already in 2021, it’s safe to say that this year will be a record breaker for IPO investment. This immense growth in public offerings has led trading platforms to announce that they will begin allowing users to invest in IPOs, but with Freedom Finance Europe this is already possible,” explains Maxim Manturov, Head of Investment Research at Freedom Finance Europe.
“Trading platforms have historically allowed users to invest in a plethora of stocks and for the most part this has kept investors happy. But with the surge in IPOs hitting the market, investors now feel like they’re missing out on a golden opportunity. By investing in an IPO, the users is able to invest directly into a company at the issue price before the stock begins to circulate on the open stock market. In some cases, this can lead to the stock’s value increasing enormously in only the first few hours.
“As a result, trading apps like Robinhood have begun to look into offering IPOs to its users but such an offer is not new in the market. Freedom Finance Europe already allows its users to invest in IPOs through its Freedom24 trading app and has recently offered the UiPath IPO, Coursera IPO, and Procore IPO in the last few months. The average profit on all IPOs traded through Freedom24 over the last three months is a respectable 78% (as of April 2021) with recent star performers including Airbnb (189% increase), Snowflake (171%), Unity Software (203%) and Corsair Gaming (141%).
“By being the only European based stockbroker listed on the Nasdaq, Freedom Finance Europe opens a window for small retail investors that has historically only been available to large investors with multimillion pound capital. It’s important that retail investors have the option to invest in IPOs and with so many hitting the market there’s no time to waste and wait for other trading platforms to adopt such a strategy. To do this it’s imperative to do your research and utilise the options that are already available.”