Risk Disclosure & IPO Risks Australia

This page explains key risks that can apply when participating in ASX IPOs, ASX placements, and other capital raising opportunities in Australia. It is designed to help you understand the types of risks that may affect outcomes, even when an opportunity looks attractive.

Nothing on this site is financial product advice unless explicitly stated otherwise. Any information provided is general in nature and does not take into account your objectives, financial situation, or needs. You should consider whether an investment is appropriate for you and seek independent professional advice if required.

Important context about capital raises

Capital raises can involve reduced disclosure compared to offers made to retail investors. Some opportunities may be available only to eligible investors and may be distributed under exemptions or wholesale settings. Reduced disclosure does not mean reduced risk.

IPO risks Australia

An IPO involves a company listing and issuing shares to investors at an offer price before trading begins. The following risks are common.

1) Listing day volatility risk

The share price may move sharply on the first day of trading and in the weeks following. Early trading can be driven by liquidity, sentiment, and positioning rather than fundamentals.

Many IPOs are oversubscribed. You may receive fewer shares than you applied for, or none. This can impact portfolio construction and expectations around exposure.

Some investors qualify through related wholesale categories, such as professional investor status (often applying to AFSL holders, institutional investors, or certain managed investment structures). If this is relevant, the evidence requirements can differ.

If you are unsure which category fits, the safest approach is to verify your status using the accountant certificate route where possible.

New listings have less public market data. Forecasts and assumptions may be difficult to validate versus established listed peers.

Some IPOs list with a limited free float. This can increase volatility and widen spreads. It may be difficult to buy or sell without moving the price.

Proceeds do not guarantee execution. The company may not deliver on growth plans, and stated use of funds may not produce the expected outcomes.

Prospectus disclosure can still involve assumptions and forward looking statements. Changes to regulation, approvals, or legal disputes can affect performance and timing.

Placement risks

Placements typically involve an ASX listed company issuing new shares to selected investors, often at a discount. Common placement risks include the following.

1) Dilution risk

Placements increase the number of shares on issue. Existing holdings can be diluted, and earnings per share may be impacted.

2) Price adjustment risk

After a placement, the market may reprice the company. Discounts can create short term pressure, especially if the raise is viewed negatively.

3) Allocation risk

You may be scaled back, particularly in oversubscribed raises. Allocation outcomes can differ from expectations and may concentrate exposure unintentionally.

4) Liquidity and volatility risk

Placements in small and mid cap stocks can involve limited liquidity. Selling may be difficult in fast markets.

5) Company specific execution risk

The capital raise may not achieve its purpose. Project delays, cost overruns, weaker demand, or operational issues can erode value.

6) Information and time pressure risk

Placements can move quickly. Short timelines can limit due diligence and increase the risk of missing critical information.

General investment risks

Evidence requirements vary by issuer, platform, and offer type, but these are the most common items requested to confirm what is a sophisticated investor status in practice.

Market risk

Broader market movements can dominate fundamentals. Sector rotations, interest rate changes, and risk sentiment can impact prices.

Overexposure to a single company, theme, or sector can increase volatility and downside risk.

Errors in settlement, platform issues, corporate actions, or third party failures can affect timelines and outcomes.

Tax outcomes vary by investor and structure. You should obtain tax advice relevant to your circumstances.

Some investments can be difficult to exit, especially in stressed markets or when free float is low.

For equities and higher risk opportunities, you can lose some or all of your invested capital.

Your responsibility

Before investing, you should:

Read all offer materials carefully, including risks and key terms
Consider whether you can afford the loss of your entire investment
Avoid relying on headlines, short term hype, or single data points
Check liquidity and your ability to exit under different scenarios
Seek independent professional advice if you are unsure

If your certificate expires under the platform policy, you may be asked to upload an updated one later.

No guarantee of outcomes

Past performance is not a reliable indicator of future results. Any examples, commentary, or market observations are provided for informational purposes only and do not constitute a promise, guarantee, or prediction.

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AFSL Licence details

Licensee Name: Peloton Capital Pty Ltd
AFSL Number: 406040
ABN: 22 149 540 018
 
General Information
Peloton Capital Pty Ltd is an Australian Financial Services Licensee (AFSL) authorized by the Australian Securities and Investments Commission (ASIC) to provide financial services to both retail and wholesale clients.
 
Authorised Financial Services
Under AFSL 406040, Peloton Capital is authorised to provide financial product advice and deal in financial products, including:
  • Securities: Buying and selling shares and corporate bonds.
  • Derivatives: Trading in exchange-traded options and other derivative products.
  • Managed Investment Schemes: Advice and dealing in unit trusts and investment funds.
  • Deposit Products: Basic deposit products.
  • Underwriting: Underwriting of an issue of securities.
  • Standard Margin Lending: Providing credit facilities for investment purposes.
 
Important Disclosures
  • Financial Services Guide (FSG): For a detailed breakdown of our services, fees, and dispute resolution process, please download our Financial Services Guide (PDF).
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Important Legal Notice

Before you proceed, please read the following carefully:

This website and the investment opportunities referred to on it are provided in reliance on section 708 of the Corporations Act 2001 (Cth). The materials you are about to access do not constitute a prospectus, product disclosure statement or other disclosure document under Australian law and have not been lodged with the Australian Securities and Investments Commission (ASIC).

Access to this website and any invitations to participate in capital raisings, placements or other investment opportunities offered or introduced by Peloton Capital is strictly limited to persons to whom offers may lawfully be made without disclosure under Part 6D.2 of the Corporations Act 2001 (Cth).

By clicking “I Confirm”, you represent and warrant that you are one of the following:

  • A sophisticated investor within the meaning of section 708(8) or 708(10) of the Corporations Act;

  • A professional investor as defined in section 9 of the Corporations Act;

  • A person to whom an offer may otherwise lawfully be made without the need for a disclosure document under section 708;

  • Accessing this information for your own investment assessment and not for redistribution; and

  • Acknowledging that Peloton Capital will rely on your confirmation in accordance with Australian law.

You acknowledge that:

  • No disclosure document has been prepared for the offers on this site;

  • You will not receive the protections afforded by a prospectus or product disclosure statement;

  • Peloton Capital and its representatives are entitled to rely on this confirmation; and

  • The invitations are not available to retail investors unless the law permits otherwise.