How To Find An IPO Stock In Australia

By Harriet Phelps

An IPO, or Initial Public Offering, occurs when a company first sells its shares of stock to the general public. Buyers of these stocks will be the investors who may assist future growth, debt repayment, or even operating cash requirements for the company.

An IPO may be done by a small company or a huge corporation. A company may choose to go public to allow workers, investors, or owners to sell and monetize their stocks. A firm may also decide to sell its stock to the public for several reasons. The IPO can:

  • Provide them with easier access to finance new business opportunities
  • Add fresh funds to support growing operations
  • Give more exposure and prestige for present equity investors

On the other hand, investors buy these shares because they’re usually cheaper and can be sold in the stock market for a profit.  That’s why investors are always on the lookout for these offerings.  But if you’re a new stock investor in Australia, you may be wondering how you may find IPO stocks or ask, ‘How do I buy an IPO stock?’

The Australia Stock Exchange (ASX) may be able to answer your question. The ASX is a stock exchange that offers stock data and listings, trading, and stock post-trade services. About 90% of stock market trading in Australia is being done in the ASX. It has a list of all pre-IPOs and IPOs to which you may subscribe for trading or investing.

Here are some steps on how to find an IPO in Australia.

  1. Make Yourself Qualified

You need to register as a qualified investor by completing an application form found in a prospectus usually available from stockbrokers. A prospectus or product disclosure statement is a regulated disclosure document required by the Corporations Act 2001. Once approved and you’ve complied with all the legal requirements, you’ll have access to all information in the stock market.

The exchange websites, the Austan Investors Association, and other sites in the field have complete listings of requirements before you can trade in the Australian stock market. A stock investor or trader must have a legal personality and financial capability because you must be capable of providing excellent financial support to the company whose stocks you just acquired.

  1. Track IPO Listings

Exchange websites are trustworthy sources of information about upcoming IPOs. You should get information straight from these reliable websites since it’s officially verified and updated.  Investors must visit different exchange sites to find more IPO listings first before brokerages acquire substantial stock holdings.

You may also employ the services of a broker to help you track IPO listings.  Stockbrokers are licensed in the field who have particular skills to work their way through finding the most promising IPO stocks for you.  They even have access to salient data of companies that are still on the negotiation table before going public.

  1. Research IPO Reports

The ASX and other exchange websites provide Australians with information about all stock listings in Australia.  These sites offer prospectus of companies on IPO, which have rich data for profitability analysis.  It’s where investors like you should get a proper assessment of whether a particular IPO has a higher probability of profit.

Pre-IPO and IPO red flags or market trend warnings are pretty similar.  As an investor, you should pay particular attention to the company’s governance structure and aggressive accounting procedures before you invest.  It’s a noted conclusion in the finance industry that companies with these characteristics are more promising financially.

So, you should make sure that you have studied a company’s promise of financial stability before you buy their stocks.

Your Subscription Opportunities

Diversity is a strength of IPOs in Australia. It’s a mix of new listings from tiny miners seeking funds for exploration, to huge industrial enterprises raising capital for worldwide expansion. There’s a huge chance of profitability if you invest or subscribe to the right stocks. But before that, you must do your due diligence first.

Finding pre-IPO and IPOs with great profit potential requires particular skills in the field. Impressions and company advertisements aren’t reliable enough; you need to have calculated assessments. That’s why you need to access various IPO listings from exchange websites and other trustworthy sources.

Following the steps in this article may help you find your most viable stock investments and be even on the lookout for good IPOs in the future. As you enrich yourself with information and investing experience, you will also gain more insights into stock investment and trading opportunities in general.

Interesting Related Article: “European IPOs reaching record levels“