Robinhood has launched IPO Access in the UK, allowing eligible retail investors to request shares in US IPOs at the offer price.
The service gives eligible customers of Robinhood’s UK platform the option to request shares in selected US initial public offerings before those companies begin trading on public markets. Requests are placed at the official offer price and carry no commission fees. According to the company, this is the first time UK retail customers on the platform have been able to access US IPO shares at their initial offering price. To deliver the service, Robinhood is working with a UK Public Offer Platform provider, though it did not name the provider or disclose the financial terms of the arrangement.
Opening the primary market to retail participants
IPO allocations have historically gone mainly to institutional investors and high-net-worth individuals. Retail investors, by contrast, have typically bought shares only once they reach the secondary market. IPO Access is designed to change that for UK users by letting them request allocations directly through Robinhood’s investment platform ahead of a listing.
Submitting a request does not guarantee an allocation, and the number of shares customers receive may differ from the number they requested. Robinhood has not set out how it will allocate shares, nor has it named any upcoming IPOs that will be available through the service. Whether a given offering is available will depend on Robinhood’s participation in that IPO. Apart from confirming that no commission will be charged, the company has not detailed other potential costs or eligibility conditions.
Extending a US model
Robinhood introduced IPO Ac to customers in the US in 2021. Since then, the company has taken part in more than 50 IPOs and made the service available to millions of US customers. The UK launch brings that model to a second market, although the scope is currently limited to US listings.
Jordan Sinclair, President of Robinhood UK, said the US launch had moved everyday investors from the margins of the IPO process to a central role. Sinclair added that the company aims to extend the same opportunity to retail investors in the UK, giving them access to the next generation of public companies.
IPO Access adds a product to Robinhood’s UK business that goes beyond trading shares already listed on public exchanges, giving customers a route into the primary market for selected US offerings. It also brings to British users a feature that has been part of the company’s US offering for five years.
Several points remain open. Robinhood has not disclosed how many UK customers it expects to use the service. Also, it has not provided projections for trading activity, financial guidance related to the launch, or an indication of how many IPOs it plans to make available to British customers.
