Participating in an IPO

What is an IPO?

An IPO, or Initial Public Offering, is the process by which a private company first sells shares to the public through a new stock issuance. These shares are currently in the registration phase and have not yet been listed on the secondary market. This process enables the company to raise capital from public investors, who will be the first to acquire the stock once it is officially listed.

How do I find upcoming IPOs?

App:

1. Navigate to Menu
2. Select More ➝ IPO Center (US).

Desktop:

1. Hover over the icons on the left and select Markets.
2. Click IPO ➝ Upcoming.

Web:

1. Click the WebTrade tab (top left).
2. Hover over the icons on the left and click Markets.
3. Select IPO Center ➝ Offerings.

How do I place an IPO order?

App:

1. Menu ➝ IPO Center (US) ➝ Available
2. Choose your desired IPO and select Order Now.
3. If not previously completed, please sign the risk disclosure statement.
4. Fill in the order form and select Place Order.

Desktop:

1. Markets ➝ IPO ➝ Available
2. Once you have located your desired IPO, select Apply.
3. If not previously completed, please sign the risk disclosure statement.
4. Fill in the order form and select Place Order.

Why are certain IPOs unavailable for purchase?

Webull aims to provide as many investment opportunities as possible. However, we may not have access to certain stocks if the underwriter has already secured sufficient buyers or is collaborating with other selling groups. This is often the case with high-demand IPOs. Rest assured, we are continually seeking new partnerships to expand our selection of offerings.

Why did I receive only a partial or no allocation of my IPO or Secondary Offering order?

When you place an order for an IPO or Secondary Offering, you are making a Conditional Offer to Buy (COB) rather than purchasing the stock outright. This means there is no guarantee that you will receive the full amount of shares you requested. The number of shares you receive from your COB will vary based on the demand for the offering and various other market factors and considerations.

An IPO is listed today. When can I begin trading the stock?

IPOs start trading on the exchange after a period known as the “Price Discovery Phase,” which is the interval between the market opening and the start of trading for the IPO. During this phase, no trades are executed and market orders cannot be placed, although limit orders are permitted. The duration of the Price Discovery Phase varies for each IPO, but it typically concludes and the stock becomes available for trading between 10:30 AM and 1:30 PM EST.

Is it considered a day trade if I sell my IPO shares on the same day they are allocated?

Yes. Selling IPO shares on the same day the company is listed is considered a day trade.

How do I enable or disable notifications for public offerings?

App:

1. Navigate to Menu.
2. Click Settings ➝ Message Settings ➝ IPO Notice (US Market).
3. Toggle on/off Push Notifications.

Desktop:

1. Hover over the icons on the left and select Contact Us.
2. Messages ➝ IPO Notice (US Market)
3. Tap on the gear icon top left.
4. Under Message Preference, toggle on/off Push Notifications.

What are the requirements to participate in IPO offerings on Webull?

To participate in IPO offerings on Webull, your trading account must have at least $100 in settled cash.

What buying power is used for IPO subscriptions?

• Cash accounts: Buying power is based on settled cash.
• Margin accounts: Buying power is based on the lesser of SMA or margin excess.

IPOs and Secondary Offerings are non-marginable securities and cannot be purchased using leverage.

Can I use unsettled funds, instant buying power, or leveraged buying power for IPO subscriptions?

• Cash accounts: Unsettled funds and instant buying power from in-transit deposits are not eligible for IPO or secondary offering subscriptions.
• Margin accounts: Day Trade buying power and Overnight buying power are not eligible for IPO or secondary offering subscriptions.

Does Webull have a flipping policy?

No. There is no flipping policy in place.

Can I sell IPO shares on the IPO date?

Yes. Once your IPO shares have been allocated and the stock has begun trading on its designated exchange, you can sell at any time. There are no holding requirements or waiting periods.

Will selling IPO shares right away affect my account or future IPO participation?

No. Selling your IPO shares immediately after they begin trading will not result in any restrictions or penalties, and will have no effect on your eligibility to participate in future IPOs.