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Bidding on a Capital Raise

Keeping you on track and updated with the status of your bids.

Your funds on Stake

When you submit a bid for an IPO or Placement shares, Stake will place a hold on the selected amount of AUD in your account. This is just like what happens when you place a buy order for other stocks. The process is necessary to ensure that you’ll have the specific amount of AUD available for settlement if your bid is successful.

After you’ve completed this action, Stake will take care of the rest. There’s no need for you to create additional accounts or take any extra steps. You can just sit back and wait until your allocated shares land in your Stake Portfolio. If you have any questions about your bid, please feel free to contact the team at

How shares are allocated

Stake will handle communications with the Lead Manager - this is the broker assisting the company to issue its IPO or Placement shares. Once bidding closes, Stake will let them know how many shares our customers have bid for. The Lead Manager also receives other bids from outside of Stake. After they’ve received all the bids, they compare the total amount to what the company was aiming to raise and give Stake an allocation of shares.

The IPO or Placement can be oversubscribed if there was a lot of demand and the Lead Manager received more bids than the company was looking to raise. In this situation there will be a ‘scaleback’, meaning Stake won’t be allocated the full amount of shares bid for by customers. If this occurs, Stake aims to allocate each customer the minimum bid amount and then divide the remaining allocation into the same percentage to add to each customer’s bid.

In the event that the Lead Manager does not receive enough bids to cover all minimum amounts, Stake will allocate the minimum bid amount to each customer starting with the earliest bid, until the allocation is exhausted. This means if an IPO or Placement is either over or under subscribed, you may not receive the full amount you bid for. Occasionally, the company could also cancel their plans to issue shares. If a proportion of or all the funds you used to bid are not allocated, they will be returned to your AUD balance.

Once the allocation has been finalised, Stake will send an email letting you know how many IPO or Placement shares you’ve secured. About a week before the shares list on the ASX, you’ll be able to view them as holdings in your portfolio on Stake. However, they won’t be available to trade until the actual listing or shortly after.

Staying up to date

Depending on the deal, the process detailed above for IPO shares usually takes several weeks, while Placement shares can complete it within several days. Stake will email you about any relevant updates. This includes when you’ve been allocated shares and when the shares start trading. You can also check the progress of any bids in the Pending Orders section of your Stake App. If you have any questions about your bid, you can contact Stake’s Capital Raises team by emailing

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Stakeshop Pty Ltd, trading as Stake, ACN 610105505, is an authorised representative (Authorised Representative No. 1241398) of Sanlam Private Wealth Pty Ltd (Australian Financial Services Licence No. 337927) ('Sanlam') and an authorised representative (Authorised Representative No. 1241398) of Airwallex Pty Ltd (Australian Financial Services Licence No. 487221) ('Airwallex'). Stake is not authorised by Airwallex under Airwallex’s AFSL to arrange for clients to be issued with securities as Airwallex is not authorised under its AFSL for this purpose. Stake is not authorised by Sanlam under Sanlam’s AFSL to arrange for clients to be issued with a non-cash payment facility as Sanlam is not authorised under its AFSL for this purpose. Stake SMSF Pty Ltd (‘Stake Super’) is not licensed to provide financial product advice under the Corporations Act. This specifically applies to any financial products which are established if you instruct Stake Super to set up a self managed super fund (‘SMSF’). When you sign up to Stake Super, you are contracting with Stake SMSF Pty Ltd who will assist in the establishment of a SMSF under a ‘no advice model’. You will also be referred to Stakeshop Pty Ltd to enable your trading account and bank account to be set up in order to use the Stake Website and/or App. Stakeshop Pty Ltd will also run marketing and promotions to you under. For more information about SMSFs, see our SMSF Risks page.The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake and Stake Super, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice given by Stake is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Financial Services GuideTerms & ConditionsPrivacy Policy and Disclaimers  before deciding to invest on or use Stake or Stake Super. By using our website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake and Stake Super are registered trademarks in Australia.

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