SpaceX’s IPO earlier this year has kicked off a wave of interest in IPOs among retail investors, but many still have reservations, according to recent research commissioned by Charles Stanley Direct.
The report, conducted by Census Wide, surveyed 1,000 DIY investors earlier this year and found that 46% of respondents wanted investment in IPOs to be more accessible for retail investors.
Some 35% said they were actively planning to invest in IPOs this year.
However, many DIY investors expressed a lack of confidence or concerns about the risk, with 34% saying retail investors’ access was often limited and oversubscribed, while another 34% said the process seemed “too risky”.
Rob Morgan, chief investment analyst at Charles Stanley, said: “IPOs play a big part in boosting market breadth and investor interest, but an IPO frenzy can easily be created too, resulting in a skewed perspective as to the opportunities they offer.”
“While many may want a piece of the IPO pie, they carry their own risks – particularly so for retail investors,” Morgan added. “High valuations and inflated demand can lead to short-term volatility which many DIY investors may not easily recover from.”
That said, not all investors were keen, with around 40% saying the demand was overhyped this year. A further 31% said they were not looking to invest in IPOs this year, while 27% said they had no interest in them at all.
See also: 2026 AI mega-IPOs: A warning sign for equity markets?
