How to Buy an IPO? Participating Through a Bank or Brokerage Firm

To buy an IPO, investors usually need an active investment account at a bank or brokerage firm and must submit their demand request during the announced book-building period. During the application, the investor selects the IPO, enters the number of lots or the amount they want to request and confirms the order. The final number of lots becomes clear after the allocation process is completed.

The IPO participation process may vary slightly depending on the bank or brokerage firm. Before submitting a request, investors should check the book-building dates, IPO price, allocation method, participating institutions and prospectus details. This content is for informational purposes only and does not constitute investment advice.

What Does Buying an IPO Mean?

Buying an IPO means submitting a demand request for shares of a company before those shares start trading on the stock exchange. The company offers its shares to investors at a determined price and under specific conditions. Investors submit their requests through banks or brokerage firms.

After the book-building period ends, the total demand and the allocation method are considered, and shares are distributed among investors. If demand is high, investors may not receive all the lots they requested. Therefore, applying for an IPO and receiving the full requested allocation are not the same thing.

How to Buy an IPO?

The general IPO participation process is as follows:

To follow current IPOs, visit the IPO calendar.

How to Participate in an IPO Through a Bank?

Many investors participate in IPOs through mobile banking, internet banking or the investment menu of their bank. To apply through a bank, your investment account usually needs to be active and you should have sufficient balance in your account.

Menu names may differ from one bank to another. Active IPOs are often listed under sections such as “Investments”, “Stocks”, “IPO”, “Demand Entry”, “Public Offering” or similar menu titles. After selecting the relevant IPO, the investor enters the lot quantity or demand amount and confirms the request.

Not every bank may participate in every IPO. For this reason, investors should check which banks or brokerage firms are authorized to collect demand for the specific IPO they want to join.

How to Participate in an IPO Through a Brokerage Firm?

Participating through a brokerage firm is similar to applying through a bank. The investor logs in to the brokerage firm’s mobile app, web platform or trading screen, checks active IPOs and submits a request for the IPO they want to join.

In brokerage platforms, IPO menus may appear under names such as “Primary Market”, “IPO Demand”, “Book Building”, “Public Offering” or “Subscription”. Before submitting the request, investors should review transaction conditions, possible fees, blocked amount practices and the allocation method.

Which Details Should Be Checked Before Applying for an IPO?

Before participating in an IPO, investors should not focus only on the question “how many lots will I receive?” The company, IPO price, allocation method and official documents should also be reviewed.

• Book-building dates: Applications can only be submitted during the announced date and time range.
• IPO price: The price per share should be checked before submitting a request.
• Allocation method: Investors should check whether the IPO uses equal allocation or proportional allocation.
• Participating institutions: The banks and brokerage firms collecting demand should be confirmed.
• Prospectus: The company’s business activities, risks and offering details should be reviewed.
• Price determination report: The assumptions behind the IPO price should be evaluated.
• First trading date: Investors should follow when the shares will start trading on the exchange.

To understand the demand collection process in more detail, read the IPO book-building guide.

How Many Lots Can You Receive in an IPO?

The exact number of lots an investor will receive in an IPO cannot be known in advance. The result depends on the IPO size, total demand, number of investors, allocation method and the allocation reserved for each investor group.

If the IPO uses equal allocation, the number of participants may be one of the most important factors. In proportional allocation, the amount or number of lots requested by the investor may have a stronger effect. For details, you can read the equal allocation and proportional allocation guides.

To estimate possible lot distribution, you can use the IPO lot calculator.

Simple IPO Participation Example

The following example is hypothetical and does not represent any specific IPO.

In this example, the investor requests 100 lots but may receive only 20 lots after allocation. How and when the unused amount is released may differ depending on the bank or brokerage firm.

When Should an IPO Request Be Submitted?

An IPO request must be submitted during the announced book-building period for that IPO. The demand collection period may last a few days, but the dates and time range can differ for each IPO.

It is usually better not to leave the application to the last minute. Banking or brokerage systems may become busy, account balance may be insufficient or the investment account activation process may not be completed. For this reason, investors should check the IPO calendar in advance.

What Should Investors Pay Attention To?

• Check the official book-building dates of the IPO.
• Make sure your investment account is active.
• Check whether you have sufficient balance in your account.
• Review the allocation method and participation conditions.
• Read the prospectus, price determination report and official announcements.
• Remember that you may not receive all the lots you request.
• Do not make an investment decision based only on social media comments or expected lot allocation.

Frequently Asked Questions

Do I need an investment account to participate in an IPO?

Yes. Investors usually need an active investment account at a bank or brokerage firm to participate in an IPO.

Can I buy an IPO through mobile banking?

Many banks allow IPO applications through mobile banking or internet banking. However, menu names and participation channels may differ from one bank to another.

Can every IPO be bought through every bank?

No. Some IPOs may be available only through specific banks or brokerage firms. Investors should check the participating institutions for each IPO.

Will I receive all the lots I request?

Not necessarily. Depending on total demand, allocation method and the number of participants, investors may receive all or only part of the lots they requested.

Can an IPO request be cancelled?

Cancellation or modification rules may vary depending on the institution and the book-building period. Investors should check the rules of their bank or brokerage firm before submitting a request.

When do IPO shares start trading?

After the book-building and allocation process is completed, the first trading date is announced separately. This date may differ for each IPO.

Conclusion

To participate in an IPO, investors generally need an active investment account and must submit a demand request through a bank or brokerage firm during the book-building period. Before applying, the IPO price, allocation method, participation conditions and official documents should be reviewed.

Submitting a demand request does not guarantee receiving all requested lots. The final allocation result becomes clear after the IPO process is completed. To follow current IPOs, visit the IPO calendar.

This content is for informational purposes only and does not constitute investment advice. Before participating in an IPO, investors should review the prospectus, price determination report, company financials and official announcements.