New Issues & IPOs
A new issue or an IPO (Initial Public Offering) involves an Investment Bank working in tandem with a prospective PLC to list the company on the stock market for the first time, or in some cases, to assist with the issue of additional shares.
However, it is not always possible for retail investors to participate in new issues or IPOs. The EU Prospectus Directive dictates that in order to offer shares to the public, the company must issue a prospectus approved by the Financial Conduct Authority (FCA). Therefore, as a result, some companies choose not to issue a prospectus and offer shares exclusively to professional investors and institutions only.
What is an IPO?
A new issue or an IPO is the sale of additional shares or a company listing its shares on the stock exchange for the first time. Renowned companies listing for the first time can often lead to high demand for the issue and therefore participation in the IPO may be limited for retail investors. Stock is usually offered to institutions such as private equity houses, asset managers and pension funds.
New Issues are not subject to stamp duty. Furthermore, shares can often be priced at a discount to increase the attraction of the stock. In this event, high demand may lead to an initial short term rise, although this is not guaranteed and new issues may fall in value when listed on the market.
Investments can fall in value and you may lose some or all of the amount you have invested. Additionally, most new issues and IPOs have extreme time constraints, operating with an application period of two weeks or less. Please note that the offering can be closed early, scaled back or withdrawn depending on demand. New issues do not always come to market at a premium.
How to Apply
Through Hedley & Co
For our existing clients, if you are interested in an IPO or New issue, then please do contact your Investment Manager or broker. For Managed clients, it may be that your advisor will contact you if they feel a new issue is appropriate for your current portfolio.
For prospective clients, you will have to set up an account with Hedley & Co before we can assist with participating in a new issue on your behalf. If this is of interest then please contact either the Blackburn or Preston office, whose contact details are listed below.
As mentioned, it may be the case that Hedley & Co are unable to participate in the IPO or New Issue due to the demand of the issue or nature of the company being floated.
Through Primary Bid
For instances where Hedley & Co may not have a direct relationship with the offering Investment Bank, we have established a partnership with Primary Bid.
Primary Bid will provide clients access to a variety of new issues and IPOs that Hedley & Co can not participate in directly.
If this is of interest to our existing clients, follow the 'create account' link below. You can then select Hedley & Co in the Broker Details section. When asked for a general investment account number, please input your Hedley account number (NOT person number). Please note, clients cannot enter in their ISA or SIPP number.
Clients can then pay for the shares directly with Primary Bid and the shares will be applied to their Hedley account.
Register Interest in an Upcoming IPO or New Issue
Please fill in your details to register your interest in any upcoming IPOs.
How it works:
One of our Stockbrokers will be in touch over the phone or via email to discuss whether Hedley & Co can participate in the IPO.
If Hedley & Co can obtain stock in the new issue, we will have to ensure that the prospective client is eligible to participate in the IPO.
Hedley & Co are not guaranteed to be allocated stock when applying for IPOs and please be aware that Hedley & Co are not granted access to all new IPOs.