Databricks Inc, best known for its unified data analytics platform, is reportedly considering an IPO later this year. According to a Bloomberg report, the company was valued at $6.2 billion in 2019. But the company announced new funding on Feb. 1, 2021 from investors including Amazon and Alphabet that valued the company at $28 billion, CNBC reported.
Here’s what we know so far about the IPO — and how to invest when the stock goes public.
Note: all dollar amounts on this page are in US dollars unless otherwise stated.
Databricks is expected to go public. Databricks has not yet filed a viewable Form S-1 with the US Securities and Exchange Commission. We’ll update this page with information as it becomes available.
There’s no news yet about how much the stock will cost when it goes public. No date has been set for when the stock will be publicly available.
You won’t be able to buy Databricks shares on a Canadian stock exchange like the TSX or CSE, but you can from a Canadian-based brokerage that offers international access to companies listed on stock exchanges outside of Canada. Given that Databricks is based on California, you’ll need a brokerage that provides access to US exchanges.
Some of the Canadian online trading platforms that provide access to US-listed stocks include Questrade, Wealthsimple, Interactive Brokers and Scotia iTRADE.
The process of buying stocks in a US company while living in Canada is 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 US stocks.
How to invest in US stocks from Canada
Once Databricks 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.
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.
To buy stocks, you’ll need to open a brokerage account. Compare your options using the table below to find the best fit for you. Take a look at our guide on opening a stock trading account to learn more.
Note: The dollar amounts in the table below are in Canadian dollars.
To make comparing even easier we came up with the Finder Score. Trading costs, account fees and features across 10+ stock trading platforms and apps are all weighted and scaled to produce a score out of 10. The higher the score the better the platform - simple.
Online stock trading
Your guide to how ETFs work and whether this type of investment is right for you.
Read more…
Learning how to read stock charts and recognize chart patterns can unlock your success as a trader.
Read more…
Owning a stock means you own part of a company and can potentially grow your wealth. But there is a risk of loss.
Read more…
Steps to owning and managing NPI stock, with 24-hour and historical pricing before you buy.
These are the best renewable energy stocks to buy now in Canada.
Finder’s unique algorithm found the 20 best TSX stocks to buy right now.
Whether you’re a new or experienced investor, these are the best stock trading platforms and apps in Canada.
Everything we know about the IL Makiage IPO plus information on how to buy in.
Everything we know about the ByteDance IPO plus information on how to buy in.
Everything we know about the Auvik Networks IPO plus information on how to buy in.
If you live in Canada, you need a broker that provides access to foreign investments to buy Universal Music Group stock.
Find out how to invest in the S&P 500 in Canada—one of the world’s most popular stock indices—to diversify your portfolio.
Check out the pros and cons of BMO’s self-directed trading platform in our InvestorLine review.