Robinhood wants to give amateur investors access to initial public offering shares ahead of its own planned IPO.
The popular no-fee trading app that’s become synonymous with the Reddit rally unveiled IPO Access on Thursday, giving users the ability to buy shares at their listing price before they begin trading on stock exchanges.
IPO shares are normally only offered to large investors of Wall Street brokerage firms.
It’s unclear if the new product will give Robinhood traders access to Robinhood’s own planned IPO, which is expected for June. If it does, the product stands to help buoy the startup’s stock debut by expanding demand from Wall Street to Main Street.
The new feature lets users explore upcoming IPOs and request to purchase shares ahead of time with no account minimum. The product will be gradually rolled out over the next few weeks, the company said.
At the end of the blogpost unveiling their new product, Robinhood added this disclaimer: “IPOs can be risky and speculative investments, and may not be appropriate for every investor.”
The coda appears to be a nod to rampant criticism that the company doesn’t adequately warn investors of the risk