The risks and rewards of the IPO hype in Canada
6/11/202623 min
There’s a surge of excitement around a few big companies going public this year – like Apotex and SpaceX both going on stock exchanges this week. These IPOs, or initial public offerings, are generating a ton of buzz – and there’s particular interest in trying to invest in a company before it goes public.
Meera Raman, The Globe’s personal finance reporter, is here today to explain how Canadians are getting involved in IPOs, and the potential benefits and risks of this increase in DIY investing.
Questions? Comments? Ideas? E-mail us at thedecibel@globeandmail.com
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First 90 secondsCheryl Sutherland· Host0:00
[gentle music] There's a surge of excitement about a few really big companies going public this year. There's Canadian pharmaceutical giant Apotex, which went public on Wednesday, and Elon Musk's SpaceX is set to go public on Friday. Initial public offerings, better known as IPOs, are also expected from AI giants Anthropic and OpenAI later this year. That means they'll be listed on stock exchanges so anyone can invest. And there's particular interest, especially here in Canada, in getting in with a private company before the company even goes public. Today, we've got Mira Rahman on the show. She's The Globe's personal finance reporter. She's here to tell us about this hype around IPOs, how Canadians are getting involved, and the potential benefits and risks of this increase in DIY investing. I'm Cheryl Sutherland, and this is The Decibel from The Globe and Mail. Hi, Mira. Nice to have you back on the show.
Meera Raman· Guest1:10
I always love being here. Thanks for having me.
Cheryl Sutherland· Host1:12
So let's start basic here and talk about what exactly an IPO is and how it works. So what is the process?
Meera Raman· Guest1:19
So IPO stands for initial public offering. So what that means is that there's a company that is private and h- it has decided to go public, and when it goes public,