IG Group, a provider of online trading and investing, is bolstering its offering, enabling access to retail initial public offerings (IPOs) on its investment platform for the first time ever. The new offering gives access to previously off-limits IPOs, at a time when the IPO market is looking to heat up in 2017.
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While the IPO market proved to be quite lackluster in 2016, as indicated by a dearth of new offerings on multiple exchanges in the US and UK, the demand for such opportunities remains high. Previously retail investors had to go through underwriters or other means, making the new offering highly advantageous for ordinary market participants.
Furthermore, the group’s new offering pairs well with its existing product suite, which already includes ready-made diversified portfolios product IG Smart Portfolios, in partnership with BlackRock. This new development will effectively allow investors to subscribe to upcoming IPOs and placings through their IG share dealing accounts or share dealing ISA – only a dealing charge of £5 at the time of a sale is levied.
Accoridng to Peter Hetherington, CEO of IG Group, in a statement on the offering: “The addition of IPOs is further proof of our commitment to Investments and another important step in the development of our offering. We actively encourage feedback from our customers and they told us they wanted access to retail IPOs on our award winning platform. I believe our customers will see this as a further reason to continue to invest and trade with IG.”