On July 25, 2026, the US IPO market once again had its highlight moment. As well-known companies like Robinhood and Reddit updated their prospectuses, a new wave of IPO subscriptions is brewing. For A-share investors, cross-border participation in US IPOs may have certain thresholds, but by understanding the latest dynamics and industry logic, potential investment opportunities can still be captured. This article will explain in plain language the recent US IPO hotspots and the opportunities behind them.
1. Robinhood IPO: Zero-Commission Broker Giant Lists on Nasdaq
U.S. online broker Robinhood formally filed its S-1 this week, planning to list on Nasdaq under the ticker "HOOD". The platform, which started with zero-commission trading, has accumulated over 20 million retail users thanks to its clean interface and commission-free model. The IPO is expected to raise about $3 billion, with a valuation potentially exceeding $40 billion.
Robinhood's listing comes amid rising retail trading activity in US stocks. In H1 2026, as US tech stocks rebounded, retail trading volume rose 35% year-over-year. Robinhood's business model relies heavily on "payment for order flow" (PFOF), i.e., routing client orders to market makers for rebates. Though controversial, this model has become its core profit source.
Investment Highlights:
- Strong User Stickiness: Robinhood has over 17 million monthly active users, with a high proportion of young users, providing a basis for future monetization.
- Crypto Business: Robinhood also offers crypto trading; in Q1 2026, crypto revenue accounted for 18%, benefiting from Bitcoin price recovery.
- Regulatory Risk: SEC scrutiny of the PFOF model may affect profitability; policy changes need continuous attention.
For IPO subscribers, Robinhood's IPO is expected to price in the first week of August. Retail investors can pre-order through some brokerages. However, note that after listing at a high valuation, there may be correction risks; long-term value is recommended.
2. Reddit IPO: Social Forum Giant Seeks Listing, Content Ecosystem Value Shines
Social platform Reddit filed its listing application on July 20, planning to list on the NYSE under the ticker "RDDT". Reddit has over 500 million monthly active users, known for interest communities (Subreddits) covering topics like gaming, tech, and finance. The IPO aims to raise about $1.5 billion, with a valuation around $15 billion.
Reddit's business model relies mainly on advertising revenue; in Q2 2026, ad revenue grew 40% year-over-year, driven by increased user engagement and ad tech upgrades. Additionally, Reddit's data licensing business has become a new growth area, with its forum content widely used to train AI models, and it has signed data licensing agreements with multiple AI companies.
Investment Highlights:
- Community Value: Reddit's UGC content has high stickiness and scarcity; average user session duration exceeds 30 minutes.
- AI Data Dividend: As one of the world's largest text corpora, Reddit's data licensing business is expected to become a profit engine.
- User Growth: New users in 2026 mainly come from emerging markets like India and Brazil, with large international expansion potential.
Reddit's IPO is seen as the most anticipated social platform listing since Snap. Due to high retail investor interest, IPO subscription competition may be fierce; investors are advised to watch the offering price range and subscription multiples.
3. Chinese Concept Stock IPOs: Hesai Technology, J&T Express, etc. Rush to US Markets
Besides U.S. domestic companies, Chinese concept stocks are also actively listing in the U.S. Lidar maker Hesai Technology updated its prospectus on July 15, planning to issue ADSs to raise $500 million. J&T Express is reportedly filing an IPO application as early as August, with a target valuation of $20 billion. Additionally, NEV maker Neta Auto is considering a SPAC listing in the U.S.
The trend of Chinese concept stocks returning to the U.S. has warmed up in 2026, mainly thanks to progress in Sino-U.S. audit regulatory cooperation. The China Securities Regulatory Commission (CSRC) issued new rules in early July, simplifying the filing process for overseas listings, clearing obstacles for Chinese companies to list in the U.S. For A-share investors, the appeal of Chinese concept stock IPOs lies in the high growth of their domestic businesses, but cross-market valuation differences need attention.
Stocks to Watch:
- Hesai Technology: Global lidar market share leader, benefiting from accelerated commercialization of autonomous driving; Q1 2026 revenue grew 80% YoY.
- J&T Express: Express delivery leader in Southeast Asia, expanding rapidly via e-commerce platforms like Pinduoduo, but profitability remains to be proven.
- Neta Auto: Domestic NEV startup; H1 2026 deliveries up 120% YoY, targeting the value-for-money segment.
4. US IPO Subscription Practical Guide: How to Participate?
US IPO subscription is not zero-threshold. Traditionally, institutional investors and some wealthy individuals could get new share allocations, but in recent years, many online brokerages have launched "retail IPO subscription" services, such as Interactive Brokers, Futu, Tiger Brokers, etc. Investors can refer to the following steps:
- Open a US Stock Account: Choose a brokerage supporting new issue subscription and complete deposit. Note that some brokerages have minimum subscription funds (e.g., $1,000).
- Follow Prospectuses: Obtain latest prospectuses via SEC EDGAR system; focus on risk factors, financial data, and underwriters.
- Subscription Timeline: Usually open 2-5 business days before pricing; deadline is generally on pricing day.
- Allotment & Distribution: Retail allotment rates are typically low; popular stocks may only allocate 10-50 shares. Using margin subscription can increase chances but incur interest risk.
- Post-Listing Strategy: US new stocks are volatile on debut; set stop-profit and stop-loss points. If long-term value is expected, hold until lock-up period ends.
Note that IPO subscription is not risk-free. In H1 2026, US IPO new stocks averaged a first-day gain of about 15%, but with significant divergence; some stocks had break-even rates over 30%. Investors need to carefully evaluate.
5. Industry Analysis: Why Is the US IPO Market Heating Up in Q3 2026?
Recent US IPO market activity is driven by three factors:
- Fed Easing Expectations: Market widely expects a 25bp rate cut in September, improving liquidity and boosting new stock valuations.
- Ample Unicorn Reserves: After the 2024-2025 IPO winter, many startups have piled up listing demand, including AI, fintech, etc.
- Secondary Market Recovery: Nasdaq index up 18% YTD, providing a favorable valuation anchor for new listings.
A PwC report notes that over 80 companies are expected to file IPOs in Q3 2026, with total fundraising possibly exceeding $50 billion. Once star stocks like Robinhood and Reddit list successfully, more companies will follow, creating a positive feedback loop.
For A-share investors, the hot US IPO market offers a cross-market allocation idea. By participating in quality US IPOs, they can diversify A-share market risk and share growth dividends of global new economy companies. However, note exchange rate fluctuations and cross-border transaction costs.
6. Risk Warning and Summary
US IPO subscription is not for everyone. Investors should be wary of the following risks:
- Information Asymmetry: Retail investors lag institutions in information; subscription decisions easily swayed by market sentiment.
- Post-Lock-Up Decline: Allotted stocks may face selling pressure, especially when lock-up expires.
- Compliance Risk: Some brokerages' IPO services may involve margin trading; use cautiously.
In summary, the US IPO wave in Q3 2026 offers abundant subscription opportunities. Robinhood and Reddit, as the most representative new stocks in this round, deserve close attention. Among Chinese concept stocks, Hesai Technology, J&T Express, etc., also have growth potential. It is recommended that investors allocate funds reasonably based on their risk tolerance and continuously track market dynamics. Remember, IPO subscription is only part of an investment strategy; long-term value investing is king.
