CMC Markets has launched a grey market pre-IPO trading service on Thursday, enabling clients to speculate on companies ahead of public listings via spread bets and CFDs. The product launches initially with SpaceX.
Clients can take long or short positions on SpaceX’s expected share-price movement after listing. Once the company begins trading on a stock exchange, the pre-IPO position rolls into CMC’s standard listed share spread bet or CFD. The client retains full control over when to close the trade.
If the IPO is cancelled or does not proceed, CMC said open trades will be closed at the price at which they were opened, with no profit or loss realised.
The timing aligns with SpaceX’s IPO process. Reuters reported on Wednesday that SpaceX filed publicly for an IPO after a confidential filing on 1 April, and could list on Nasdaq as early as 12 June at a valuation around $1.75 trillion.
CMC is capturing speculative demand earlier in the IPO cycle and carrying that flow into the listed phase without requiring clients to close and reopen exposure.
CMC said additional high-profile private companies will be added as demand develops. The broker’s pre-IPO trading page lists Revolut and OpenAI as companies that could announce IPO plans.
“We are seeing growing demand for event-driven trading opportunities, particularly around high-profile private companies and anticipated IPO activity,” said Vaughn Affonso, Co-Head of Dealing at CMC Markets. “Launching with SpaceX reflects that appetite and broadens the range of opportunities available to clients.”
The launch extends CMC’s multi-asset push. The broker rolled out a combined investing-and-CFD platform in March covering more than 12,000 global shares and ETFs.
