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How to buy Ginkgo Bioworks stock in Canada when it goes public

Here's everything we know so far about the Ginkgo Bioworks IPO.

Ginkgo Bioworks plans to go public by merging with special purpose acquisition company (SPAC), Soaring Eagle Acquisition Corp. But there’s no word yet on its anticipated release date or projected share price. Here's how investors in Canada can prepare to buy in when Ginkgo Bioworks finally goes public.

Finder's top picks on where to buy Ginkgo Bioworks stock when it goes public

What we know about the Ginkgo Bioworks IPO

On May 11, 2021, Ginkgo Bioworks announced that it will go public via merging with Soaring Eagle Acquisition Corp., and SPAC. The deal is expected to close in the third quarter of 2021, and the newly merged company will trade on the Nasdaq Capital Market. Other details of the event, such as the exact closing date, expected share price and ticker symbol, have not yet been announced.

Special purpose acquisition companies (SPACs or "blank check companies" for short) are shell businesses that exist purely on paper. SPACs are created for the purpose of going public, selling stocks, raising capital and merging with another company.

The process of going public via merging with another publicly-traded company is quicker and easier than the traditional IPO process. Plus, funds raised by the SPAC from selling its stock gets passed on to any company it merges with. As a result, more and more companies are going public via SPACs.

Soaring Eagle Acquisition Corp. was founded in 2020 and went public on the Nasdaq Capital Market on February 24, 2021. It sold 172,500,000 stocks at a price of $10 per stock, raising around $1.5 billion total. The company filed with the SEC on February 11, 2021. You can view the prospectus here.

We'll update this page as more information becomes available.

Note: all dollar amounts on this page are in US dollars unless otherwise stated.

How to buy shares in Ginkgo Bioworks when it goes public

Once Ginkgo Bioworks goes public, you'll need a brokerage account to invest. Consider opening a brokerage account today so you're ready as soon as the stock hits the market.

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Ginkgo Bioworks. Find the stock by name or ticker symbol. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy immediately with a market order or use a limit order to delay your purchase until Ginkgo Bioworks reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Ginkgo Bioworks, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Ginkgo Bioworks. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Will I be able to buy Ginkgo Bioworks stocks from Canada?

You won't be able to buy Ginkgo Bioworks stocks on a Canadian stock exchange like the TSX or CSE. Instead, you'll need a Canadian broker that provides access to stocks sold on international exchanges. However, some Canadian brokerages don't offer access to international investments at all or only provide access to a limited range of investment opportunities.

You can access US exchanges like the NYSE and the NASDAQ using Canadian trading platforms like Questrade, Wealthsimple Trade, Scotia iTRADE and Interactive Brokers. Interactive Brokers also provides access to many stock exchanges outside North America like the Hong Kong Stock Exchange (SEHK), Korea Stock Exchange (KSE), National Stock Exchange of India (NSE), Frankfurt Stock Exchange (FWB) and London Stock Exchange (LSE).

The process of buying stocks listed on international exchanges is basically the same as buying stocks in a Canadian company. You buy and sell using your online trading account or through an investment broker who handles international stocks.

How to buy international stocks in Canada

Tax implications of buying US stocks in Canada

Agreements between Canada and the US require Canadians holding US stock investments to pay the US Internal Revenue Service (IRS) a 15% withholding tax on any dividends earned on their US stocks. Interest earned from bonds or other interest-yielding US investments are similarly taxed at a rate of 10%.

An exception is made for stock investments held in trust exclusively designed to provide retirement income. Such trusts include RRIFs, LIRAs, LIFs, LRIFs and Prescribed RRIFs. RRSPs are also exempt from US withholding tax if you own US investments in the form of US stocks, bonds or ETFs.

Investment accounts that do not qualify for this exemption include RESPs, TFSAs and RDSPs.

All income from investments, including foreign investments, must be declared as part of your income on your Canadian tax return. Unless your US earnings are exempt from withholding tax, this means you'll be double taxed on those earnings — first by the IRS, then by the CRA. However, the CRA may allow you to claim foreign tax credits for any taxes you've already paid to the IRS.

Speak with a tax professional to find out what rules and exceptions apply to your circumstances.

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Note: The dollar amounts in the table below are in Canadian dollars.

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Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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