Robinhood Rolls out New Feature IPO Access

Fazzaco learned that the US-based trading platform Robinhood announce it is starting to roll out IPO Access, a new product that will give you the opportunity to buy shares of companies at their IPO price, before trading on public exchanges. 

Robinhood hopes it will attract potential new (and existing) retail clients with the opportunity to participate in new IPO offerings, like professional and institutional investors. With IPO Access, clients can participate in upcoming IPOs with no account minimums.

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The company says most IPO shares typically go to institutions or wealthier investors. However, everyday investors at Robinhood will have the chance to get in at the IPO price with IPO Access. 

Here’s Robinhood says how IPO Access works:

Discover upcoming IPOs from a list of participating companies that plan to distribute shares to Robinhood. You can also follow those companies to stay up to date on milestones, and read their preliminary prospectus to learn about the business model, management team, and risk factors. 

Request to buy shares of companies at their initial listing price range. When the final price is set, you’ll be able to review, edit, or cancel your request, before shares are allocated to Robinhood customers. 

Watch and wait—IPO shares can be very limited, but all Robinhood customers get an equal shot at shares regardless of order size or account value.

Fazzaco earlier reported Robinhood announced it has confidentially submitted a draft registration statement​ on Form S-1 with the Securities and Exchange Commission (SEC) relating to the proposed initial public offering (IPO) of its common stock.