Bid on initial public offerings (IPOs)

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.

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 that point, it's either used to buy your shares or released back to your account.

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.

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.

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 in two steps. First, a weighted random selection across all eligible requests: the selection is weighted so that Generation clients receive a higher weighting and all other eligible clients receive the standard weighting. The size of your request doesn't affect whether you're selected, and clients with a history of flipping may not be eligible. Second, allocation sizing: among those selected, the number of shares you requested factors into how many you receive. Receiving shares isn't guaranteed.

Not receiving shares is a common outcome, especially for popular IPOs. Allocations happen in two steps: a weighted random selection across all eligible requests (Generation clients receive a higher weighting; all other eligible clients receive the standard weighting), followed by allocation sizing among those selected. The size of your request doesn't affect whether you're selected. Even when selected, many clients receive fewer shares than requested, or none at all. Your reserved cash will be released back to your account, and you'll get a confirmation notification. This is normal and isn't an error.

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.

You can't edit a bid directly, but you can cancel it and submit a new one before the order book closes. After the order book closes, you can still cancel your request any time before it becomes final at the end of the cancellation window, directly from the IPO's page or your Activity feed. Once the IPO has been priced (which usually happens in the evening), we'll email you to let you know. We'll then communicate your allocation by the next morning. Once we deliver final offering documents to you, which may happen shortly following your allocation, that delivery effectively closes the cancellation window. Once the window closes, your request becomes final and can't be changed. Because this can move quickly, we recommend being ready to act early once you receive the price confirmation if you want to cancel your order.

If you'd like to cancel your request after your allocation has been made, please contact our support team.

Please note that timing may vary depending on the specific offering and is subject to change based on the requirements of the underwriter or selling group.

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, your allocation is confirmed, and we deliver the final offering document to you. You can cancel at any time before your request becomes final.

Yes, for IPOs offered into Canada by way of a prospectus. You have a 2-business-day window to withdraw, starting from the later of when we deliver the final prospectus (or any amendment) to you or the time your conditional offer to buy becomes binding. During that window, you can cancel your order and get your reserved cash back. If the prospectus is amended, the 2-business-day clock resets, giving you another chance to review the updated terms and cancel. This withdrawal right doesn't apply to U.S.-only IPOs, which are offered under a prospectus exemption rather than a Canadian prospectus. To exercise it, contact our support team.

You can bid from Wealthsimple Trade accounts that are non-registered (including margin), registered (RRSP, TFSA, FHSA, RESP), or Business investing accounts, in CAD or USD.

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.

Eligibility is set per offering. In general, IPOs offered into Canada by way of a prospectus are open to all eligible Wealthsimple clients. U.S.-only IPOs require accredited investor status. Additional eligibility requirements can also apply. You'll see the requirements on the bid page before you submit.

An accredited investor is someone who meets financial thresholds set under Canadian securities law. You only need this status to bid on U.S.-only IPOs. You can qualify with more than $1,000,000 in financial assets and confirm your status by linking external accounts, or automatically if you already hold more than $1,000,000 at Wealthsimple. For full details, see Confirm your accredited investor status for U.S.-only IPOs.

Selling your allocated IPO shares on the open market, or transferring them off the Wealthsimple platform, within 60 days of the IPO is considered flipping. Underwriters discourage flipping and may exclude us from future IPOs if we permit it. If you flip your IPO shares, your participation history is factored into future allocations and reduces your weighting, so you're less likely to be selected. Wealthsimple also reserves the right to disallow repeat or significant flippers from future IPOs entirely.

This only applies to the shares you received through the IPO allocation. Secondary market purchases, sales, and options activity won't be taken into account.

If you'd rather not worry about it, just keep at least as many shares as you were allocated in your account for the full 60 days. As long as you don't dip below your IPO allocation, you won't be treated as flipping.

Moving your shares between your own Wealthsimple accounts (for example, from a non-registered account into a TFSA or RRSP) doesn't count as flipping. You can also 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.

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.

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'll need to do this before the order book closes, which varies by deal.

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.

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.

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.

You can find it 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.

We'll notify you when:

• A new document is delivered
• The expected pricing or listing date changes
• Our order book is expected to close soon (this may be several days before pricing)
• The IPO has been priced
• Your allocation has been confirmed
• The cancellation window is about to close
• 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.

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.

IPOs offered into Canada by way of a prospectus can be Canadian or U.S. IPOs. The prospectus is filed with Canadian securities regulators (a U.S. IPO may also have a U.S. registration statement), and all eligible Wealthsimple clients can submit a bid. You can bid from CAD or USD accounts. A 2-business-day right of withdrawal applies, based on the later of when we deliver the final offering documents to you or the date your conditional offer to buy becomes binding. For Canadian IPOs, allocations are communicated 5–10 days before closing; for U.S. IPOs offered into Canada by way of a Canadian prospectus, allocations are communicated on the morning of closing. Supported listing exchanges include the TSX, TSXV, Cboe Canada, CSE, NYSE, and Nasdaq.

U.S.-only IPOs are offered under applicable exemptions from Canadian prospectus requirements, though the company will still file a registration statement with U.S. regulators. Only clients who qualify as accredited investors can submit a bid, and you must bid from USD accounts. No withdrawal rights apply, since U.S.-only IPOs are offered to Canadian clients under exemptions. Allocations are communicated on the morning of closing. Supported listing exchanges are NYSE and Nasdaq.

If Wealthsimple has announced participation in an upcoming IPO, you'll find all the relevant details on the IPO Centre page, accessible in the Wealthsimple app and on the web.

There are specific rules around when participation in an IPO allocation can be announced, and Wealthsimple hasn't 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 didn't receive an allocation. When Wealthsimple announces participation in a new IPO, it'll 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.

Wealthsimple supports trading in U.S. and Canadian stocks listed on the major exchanges. Stocks that 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.

Sometimes. Getting your allocation on IPO day doesn't always mean the stock has listed. For many Canadian IPOs, formal listing happens 5–10 days later. In that gap, some IPOs allow conditional trading, often called grey market or when-issued trading. These trades only settle if and when the IPO closes, and they're cancelled if it doesn't. Prices can move quickly and differ a lot from the IPO price, so this window carries its own risks. Availability isn't always in our control, since it depends on the exchange, the syndicate, and the offering terms, and even when it's available we may choose not to offer it. When we do offer it, we'll flag it on the IPO's page.

Because Wealthsimple participates in IPOs as a selling group member rather than as an underwriter, we don't always have advance notice of certain milestones and timing details, such as when an order book will close, when an IPO will be priced, when allocations will be confirmed, or when final offering documents will be publicly available. These elements are set by the issuer and the underwriting syndicate, and they can change with little or no warning. We'll always work to give you notice as soon as we're able, and we'll let you know whenever something requires your attention. Please keep in mind that securities laws limit what we're permitted to communicate about an IPO and when, so there may be times when we can't share information as early as we (or you) would like.