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Updated 2mo ago.
Updated 2mo ago.
An IPO is the process by which a private company sells its shares to the public for the first time by listing on a stock exchange. It marks the transition from a private to a publicly traded company. The IPO allows the company to raise capital from public investors.
When Shopify held its IPO in May 2015 on the Toronto Stock Exchange (SHOP.TO) and NYSE, shares were offered at US$17. Investors who bought at the IPO saw significant growth over the years. In Canada, companies like Nuvei and Lightspeed also had notable IPOs on the TSX.
IPOs generate a lot of excitement, but newly listed stocks are often very volatile in the first months of trading. For beginner investors, it is generally safer to wait a few quarters after the IPO before investing, allowing the price to stabilize. Buying a diversified ETF like XIU.TO or VFV.TO remains a less risky approach than betting on an individual IPO.