Invest in TikTok's listing

TikTok Global IPO: What You Need To Know

How can you trade or invest on TikTok's IPO?

Once the company goes public, you can either trade or invest in TikTok's stock value. You can do this by trading on rising or falling share prices with CFDs, or by investing directly in the company in the form of share trading.

To trade or invest in TikTok stocks after the IPO, follow these steps:

  1. Create a CFD trading account or open My IG to access your account.
  2. Look for "TikTok" on the trading platform
  3. Open and watch your trade

When does the TikTok IPO take place?

No date has yet been announced for the TikTok IPO and the intricacies of the listing are still being worked on. We do know, however, that the company will likely be listed in the US under the new name TikTok Global. The company will be majority owned by ByteDance (80%) and to a lesser extent owned by Oracle and Walmart (20%).

Learn more about ByteDance's expected IPO

That ownership stake is not yet confirmed, however, as U.S. companies are reportedly demanding a higher stake in the company.

How high is TikTok likely to be rated in the listing?

The latest estimates put TikTok at around $ 50 billion. That was the status in July 2020. This estimate by TikTok is 50 times higher than the company's sales of $ 1 billion in 2020.

How high could TikTok's share price be when it was listed?

The target stock price for TikTok's IPO has not yet been confirmed. Concrete figures will probably only be known once Oracle and Walmart have reached an agreement with ByteDance. What we do know, however, is that the company will at least remain a central topic for the start of 2021.

Why is TikTok going public?

TikTok has long been going public, but the company is now facing regulatory hurdles and US government scrutiny. The company recently faced a ban in the United States because it was accused of collecting data from American users.

Who are the current shareholders of TikTok?

TikTok Global is currently 80% owned by ByteDance. Oracle and Wal-Mart jointly hold a 20% stake. This is currently a hot topic and reports indicate that Oracle and Walmart want the majority of the company to be owned by US companies. It remains to be seen who the key investors in TikTok will be when the company goes public, as the division of shareholders between US and Chinese companies will also be revealed.

What is the outlook for TikTok?

TikTok looks to a very bright future, especially if TikTok's global IPO goes smoothly. The problem is if the IPO is delayed or listing remains in question, the future prospects for the company could deteriorate and investor confidence would decline. Still, TikTok is already bigger than Snap Inc, even though it wasn't founded until a few years after this social media giant.

It is therefore likely that investors will continue to ride TikTok's continuing wave of success in the future. A strong IPO price performance cannot therefore be ruled out.

What is TikTok's business model like?

TikTok's business model is based on creating videos, sharing these videos and distributing them digitally on social networks. The platform can be used to record short videos, the content of which ranges from jokes to lip-syncing and dance interludes. The videos are often very short (usually between 3 and 15 seconds), which means that there are similarities to the discontinued Vine app.

The platform offers coins for in-app purchases, which users can also give to their friends, followers or favorite filmmakers. These coins can be exchanged for digital gifts. TikTok also offers paid advertising services for brands to promote products within the app, with which the company generates a significant portion of its sales.

How strong is TikTok?

TikTok has shown strong corporate performance since its inception. With the coins that the platform sells to its users, the company generates monthly sales of $ 3.5 million. The revenues from advertising revenue are even much higher. However, since the company publishes its sales under ByteDance, there are still no concrete figures on the overall performance of TikTok.

Mobile app information services companies monitoring companies like TikTok reported a 310% increase in in-app purchases in Q4 2019 over the same period in 2018, which is over $ 50 million . These figures are provided by Apptopia. Another company, SensorTower, has even higher numbers: $ 87 million for in-app purchases in Q4 2019. So there are still exciting times ahead for the video and sharing platform.

Who are TikTok's main competitors?

TikTok's main competitors include Snap Inc, YouTube, and Facebook, all of which have strong positions in video creation and distribution. And while these are much more well-established companies, TikTok's IPO could be a social media listing that would be hugely popular for quite a while.