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Overview
You can bid on shares in an upcoming initial public offering (IPO) at the offering price, before the company starts trading on a public exchange. When you bid, you're placing a conditional offer to buy (COB) at the IPO price. If you receive an allocation, the shares appear in your account once the IPO closes.
Wealthsimple isn't the underwriter for an IPO. Investment banks running the IPO invite us to participate as a selling group member, and we pass that opportunity on to eligible Wealthsimple clients.
Eligibility
To bid on an IPO through Wealthsimple, you'll need:
- A funded Wealthsimple Trade account in good standing — non-registered and registered (RRSP, TFSA, FHSA) accounts in CAD or USD are all supported
- Enough buying power in that account to cover the reserved cash amount (buying power can include margin if you have a margin account)
- To have completed the one-time IPO bidding enrollment
- To meet any offering-specific requirements set for that IPO
Enroll in IPO bidding
Before you place your first bid, you'll complete a one-time enrollment flow. It covers the following:
- Confirming you're not a restricted person
- Agreeing to the no-flipping policy
- Acknowledging the risks of investing in an IPO
- Consenting to receive offering documents electronically
Once enrolled, you won't repeat this flow for future IPOs. You will be asked to reconfirm your restricted person status before placing a bid in each new offering.
Place a bid
Currently, bids can only be placed on the web. The IPO security details page is viewable in the Wealthsimple app, but the bid form is only available on the web platform:
- Log in to your Wealthsimple profile
- Open the IPO security details page or head to the IPO Centre for the offering you want to bid on
- Review the price range, bid deadline, and the link to the company's prospectus
- Click Place a bid and select the account you want to bid from
- If this is your first IPO, complete the enrollment flow. For all bids, you'll confirm your restricted person status
- Enter the number of shares you want to bid for
- Review the reserved cash amount — this is the top of the price range, plus a 20% buffer
- Submit your bid
Once your bid is submitted, the reserved cash stays in your account while your request is active. It isn't used to pay for the shares until the IPO is priced and the cancellation window has closed. The reserved amount is the maximum you'll pay — if the final price comes in lower than the top of the range, or if you aren't allocated all the shares you requested, the extra is released back to your available balance as soon as share allocation is completed.
Why we reserve cash with a 20% buffer
The reserved cash covers the worst case — the final IPO price ending up being higher than the initial pricing range. The 20% buffer reduces the likelihood that your bid is reduced (as described further below) as the additional reserved cash can help absorb the difference between the top of the initial pricing range and the final IPO price. If the final price comes in below your reserved amount, the difference is released back to your account after allocation.
If the final price is within the 20% buffer, your request stays in place automatically. If the final price exceeds the 20% buffer, your bid quantity is automatically adjusted down to match your reserved cash. If your reserved cash isn't enough to cover even one share at the final price, your bid is cancelled and your reserved cash is released back to your available balance. We'll notify you as soon as pricing is finalized, and you'll have a cancellation window to decline the revised quantity. See this section for the full timing.
How share allocation works
There's no minimum amount required to participate. Request the number of shares you'd like, and we'll do the rest. IPO demand can often exceed what's available. When this happens, an IPO is oversubscribed — not everyone who bids will receive shares. We allocate shares in two steps:
- Random selection: First, we run a randomized selection process across all eligible requests to determine who receives an allocation. Every request has the same chance of being selected, regardless of its size or your account history with Wealthsimple. We don't favour wealthier clients or clients with larger orders in this step.
- Allocation sizing: The number of shares you request then factors into how many shares you actually get, but it doesn't affect the likelihood that you'll get any allocation. Your allocation won't exceed your final bid quantity (which may be lower than what you originally requested if the final IPO price exceeds your reserved cash buffer).
Possible outcomes after allocation:
- Filled in full: You receive all the shares you bid for. The reserved cash is used to purchase them
- Partially filled: You receive some of the shares you bid for. Cash for the unfilled portion is released back to your account
- Not filled: Your bid wasn't selected, or the final price came in above your bid range. All reserved cash is released back to your account
Allocation timing depends on the type of IPO. For U.S. IPOs, allocation results are communicated on the morning of the IPO date. For Canadian IPOs, results are communicated 5–10 days before closing. You'll receive an in-app notification and an email when your allocation is confirmed.
Cancel your bid
You can cancel your bid any time before any time before the cancellation window closes the night before IPO day:
- Log in to your Wealthsimple profile
- Open the IPO security details page or your Activity feed
- Find your bid and select Cancel bid
- Your reserved cash will be released back to your account
To change the number of shares you've requested, cancel your existing bid and submit a new one — the quantity can't be edited directly. You'll need to do this before the bid window closes, which is typically the night before the IPO. We'll let you know in advance when this deadline is approaching for each offering. After the bid window closes, only cancellation is available.
We'll send you a notification before your request becomes final to give you a clear last chance to cancel.
After the IPO is priced
Once the IPO price is set by the underwriters, we check it against the price range originally disclosed:
- Within the 20% buffer: Your bid stays in place automatically
- Outside the 20% buffer: Your bid quantity is automatically adjusted down to match your reserved cash. If your reserved cash isn't enough to cover even one share at the final price, your bid is cancelled and your reserved cash is released back to your available balance. We'll notify you as soon as pricing is finalized.
Things to know before you bid
IPO investing carries risks that are different from buying a stock that's already trading. Before bidding, please review our risk disclosure and make sure you understand the following:
- IPOs can lose value quickly. Shares can trade below the IPO price once the company lists. There's no guarantee of a gain — and there can be significant loss.
- Your cash is reserved during the bid window. Reserved cash isn't available for other trades or withdrawals until your bid is allocated, cancelled, or released.
- FX rates can cause your bid to be cancelled. If you're bidding from a CAD account on a USD-priced IPO, the FX rate is locked at the time of your bid. If the rate moves against you and the new total exceeds your reserved cash (including the 20% buffer), your bid will be cancelled.
- Allocations aren't guaranteed. Demand can exceed supply. You may receive a partial allocation, or none at all.
- There's a no-flipping policy. If you sell or transfer your allocated IPO shares within 90 days of the IPO, you'll be considered to have flipped, and our current policy is to indefinitely restrict you from participating in future IPOs made available through Wealthsimple. You can still buy and sell the security on the open market — the restriction only applies to bidding in future IPOs made available through Wealthsimple. The full policy is disclosed before you place a bid.
- Certain people can't participate. Securities laws restrict certain individuals — including some Wealthsimple personnel, people connected to the offering, and clients excluded by the issuer or underwriters for a specific offering — from participating. Working in financial services doesn't automatically exclude you, but additional conditions may apply. You'll attest to your status before your first bid and reconfirm for each subsequent deal.
- Wealthsimple doesn't recommend IPOs. We offer IPO bidding on an order-execution-only basis, which means we don't recommend specific IPOs. The decision to participate is yours.
- No fees to participate. There are no fees to request shares or receive an allocation. You only pay for the shares you're allocated, at the final offering price.
- Read the prospectus. The prospectus is the official offering document and contains the company's financial information and risk factors. Always review it before bidding.
Frequently asked questions
What is an IPO?
An IPO (initial public offering) is when a private company sells shares to the public for the first time. Buying at the IPO price means you're purchasing before the stock begins trading on a public exchange like the TSX, NYSE, or Nasdaq.
Why can I only bid on the web?
Bidding is currently available on the web platform only. The IPO security details page is viewable on the Wealthsimple app so you can see offerings on the go, but you'll need to switch to the web to place or cancel a bid. We'll add support for bidding on the Wealthsimple app at a later date.
Why was cash reserved in my account when I placed a bid?
We reserve the cash needed to cover your bid at the highest possible price. The amount is the top of the stated price range, plus a 20% buffer, to absorb price movement before the IPO closes. This cash is held until allocation is complete — at which point it's either used to buy your shares or released back to your account.
How is the final IPO price set?
The issuer and its underwriters set the final price based on investor demand and market conditions. It usually lands within the expected price range shown in the offering documents, but not always. Wealthsimple doesn't set the price.
What happens if the final IPO price is higher than my reserved cash can cover?
If the final price is within the 20% buffer, your request stays in place automatically. If the final price exceeds the 20% buffer, we'll notify you as soon as pricing is finalized, and you'll have a cancellation window during which you can decline the revised quantity. If you cancel, you won't receive any shares and the cash we held against your request is released back to your available balance.
How are shares allocated when an IPO is oversubscribed?
There's no minimum amount required to participate — request the number of shares you'd like, and we'll do the rest. When demand exceeds supply, we allocate shares in two steps. First, we run a randomized selection across all eligible requests — every request has the same chance of being selected, regardless of size or your account history with Wealthsimple. Second, the number of shares you requested factors into how many shares you actually receive, but it doesn't affect the likelihood that you'll get an allocation. Your allocation won't exceed your final bid quantity, and your Wealthsimple status isn't a factor. Receiving shares isn't guaranteed — many IPOs receive far more demand than the shares available to purchase through the IPO.
Why didn't I receive any shares?
Not receiving shares is a common outcome — especially for popular IPOs where demand far exceeds availability. Allocations happen in two steps: A randomized selection across all eligible requests, followed by an allocation sizing step among those selected. Every request has the same chance of being selected, regardless of size. Even so, many clients in a high-demand IPO will receive fewer shares than they requested, or none at all. Your reserved cash will be released back to your account, and you'll receive a confirmation notification. This is a normal outcome and isn't an error with your account or bid.
What if I only receive some of the shares I bid for?
This is called a partial allocation. It happens when an IPO is oversubscribed and you're selected, but there aren't enough shares to fill your bid in full. The cash covering the unallocated portion is released back to your account.
Can I edit or cancel my bid?
You can cancel your bid any time before your request becomes final, either from the IPO details page or your activity feed on the web. To change the number of shares you've requested, cancel your existing bid and submit a new one — the quantity can't be edited directly. This must be done before the bid window closes (typically the night before the IPO).
Why is it called a "request" and not a "buy"?
Until the company files its final prospectus, prices and allocations aren't locked in. What you're submitting is a conditional offer to buy (COB) — a request to purchase shares if the IPO goes ahead at a price you're comfortable with and you have sufficient cash to cover the cost to acquire the number of shares you're looking to buy. It becomes a binding purchase order only after the IPO is priced and your allocation is confirmed. You can cancel at any time before your request becomes final.
Why can't I see my IPO bid in my activity feed on the Wealthsimple app?
IPO bids and allocation results don't appear in the standard activity view on the Wealthsimple app. You'll see a placeholder in the app that directs you to the web, where you can view your full bid status and allocation result. If you receive an allocation, the allocated shares will be credited to your account.
Which accounts can I bid from?
You can bid from non-registered and registered (RRSP, TFSA, FHSA) Wealthsimple Trade accounts in CAD or USD.
Can I bid on a USD-priced IPO from a CAD account?
Yes. The FX rate is locked at the time you place your bid. If the FX rate moves against you and the new total exceeds your reserved cash (including the 20% buffer), your bid will be cancelled.
Can anyone bid on any IPO?
Eligibility is set per offering. In general, Canadian IPOs and U.S. IPOs offered into Canada by prospectus are open to all eligible Wealthsimple clients. U.S.-only IPOs require accredited investor status. But additional eligibility requirements can apply. Requirements are shown on the bid page before you submit.
What is the no-flipping policy?
Selling or transferring your allocated IPO shares within 90 days of the IPO is considered flipping. Our current policy is to permanently restrict clients who flip from participating in future IPOs offered through Wealthsimple. You can still buy and sell the security on the open market — the restriction applies only to bidding in future IPOs made available through Wealthsimple. The full policy is disclosed before you place a bid and is a condition of participation.
When will my IPO shares appear in my account?
Allocated shares appear in your account once the IPO closes. The security becomes fully tradeable on Wealthsimple once it begins trading on the public exchange — note that on listing day, trading may begin later in the day rather than at market open.
Can I bid more than once for the same IPO?
No. You can have one open request per IPO across all of your Wealthsimple accounts. If you hold more than one account, you'll need to choose a single account to place your request from. To change the number of shares in your bid, cancel your existing bid and submit a new one. You can do this any time before the bid window closes — we'll let you know in advance when this deadline is approaching for each offering.
To change the number of shares in your bid, cancel your existing bid and submit a new one. You can do this any time before the bid window closes — typically the night before the IPO.
Does it cost anything to participate in an IPO?
No. There are no fees to request shares or receive an allocation. You only pay for shares you're allocated, at the final offering price.
Are there tax implications for IPO shares?
Standard tax rules apply. If you sell at a profit, the gain is generally a capital gain; if you sell at a loss, it's a capital loss. Tax treatment depends on the account type you hold the shares in. We recommend speaking with a tax professional for advice specific to your situation.
What documents will I receive after placing a bid?
We'll deliver the following electronically: the preliminary prospectus, the final prospectus, and any amendments. Documents are emailed to you and posted to the IPO's page in the Wealthsimple app and the Documents section of your account.
Where can I find the prospectus?
On the IPO's page in the Wealthsimple app (Documents panel) and in the Documents section of your account. Final documents are also emailed to clients who have requested an allocation.
What notifications will I receive after placing a bid?
We'll notify you when:
- A new document is delivered
- The bid window is about to close
- The expected pricing or listing date changes
- The IPO is priced and your allocation is confirmed
- Your request is about to become final (your last chance to cancel)
- The IPO has closed
You can manage notification preferences in your account settings.
If I don't receive any shares, can I still buy the stock once it starts trading?
Yes. Once the stock is trading on the secondary market, you can buy it on Wealthsimple like any other stock at the market price. The no-flipping policy only applies to shares received through IPO bidding — not to shares purchased on the open market after listing.
What are the differences between Canadian and U.S. IPOs?
At a high level: Canadian IPOs and U.S. IPOs offered into Canada by prospectus are open to all eligible Wealthsimple clients; U.S.-only IPOs require accredited investor status. Canadian IPOs are priced 5–10 days before closing with allocations communicated at the same time; U.S. IPOs are priced the night before, with allocations confirmed on the morning of the IPO date. Settlement is T+5 to T+10 for Canadian IPOs and T+1 for U.S. IPOs.
What IPOs will Wealthsimple offer access to?
If Wealthsimple has announced participation in an upcoming IPO, you'll find all the relevant details on the IPO Centre page, accessible through your Wealthsimple Trade account on the web.
Why are there past IPOs shown in the IPO Centre, but nothing upcoming?
There are specific rules around when participation in an IPO allocation can be announced, and Wealthsimple has not announced participation in any upcoming IPO at this time. We provide information about past IPOs for reference. These past IPOs can include IPOs where Wealthsimple received an allocation and IPOs where Wealthsimple did not receive an allocation. When Wealthsimple announces participation in a new IPO, it will appear in the IPO Centre. We recommend checking back regularly or enabling notifications in your account settings to be alerted when new IPOs become available.
Will new IPO shares be available to trade on Wealthsimple once they're listed on an exchange?
Wealthsimple supports trading in U.S. and Canadian stocks listed on the major exchanges. Stocks which have begun trading following their IPO can be traded on Wealthsimple. A company might not be available on its IPO day if it doesn't meet our trading eligibility criteria.
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