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.

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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.

If you would like to know whether a new issue or IPO would be suitable for you, get in touch with the Hedley & Co team.

What is an New Issue or 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.

Potential Benefits of a New Issue

New Issues are not subject to stamp duty. So this means 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.

Potential Risks of a New Issue

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 Please note that the offering can be closed early, scaled back or withdrawn depending on demand.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 IPOs and New Issues work

Through Hedley & Co

One of our investment managers will be happy to discuss the options available to you and help you establish if an IPO or New Issue is suitable for you.

It is important to note that 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.

This will be determined upon understanding your financial objectives and the options available.

Arrange a call with an investment manager

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 provide clients access to a variety of new issues and IPOs that Hedley & Co can not participate in directly.

If this is of interest and you are a client of Hedley & Co, please click on the 'Create account' link below. Then select 'Hedley & Co' in the Broker Details section. When asked for a general investment account number, please input your Hedley account number (NOT your person number). Please note you cannot enter in your ISA or SIPP number.

You can then pay for the shares directly with Primary Bid and the shares will be applied to your Hedley account.

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Bond Issues

Hedley & Co have also partnered with several Fixed Interest issuers, including Lendinvest and CAF, to raise capital for a number of successful bond issues.

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Bonds can be a lower risk alternative than equities, however bonds may still carry some risk to your capital. Please speak to your investment manager to discuss whether the bonds offered are suitable for your circumstances before making an investment.

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If you would like to be added to our mailing list to inform existing and prospective clients of new bond issues, please complete the form below and include 'Bond Issues' in the Subject line.

Book a free consultation

Please fill in your details to book an initial consultation with one of our investment experts.

How it works:

We offer a free no obligation consultation where we can discuss what investment options are open to you and explain how we can help you with your financial future.

One of our investment managers will be in touch over the phone or via email.
We will answer any questions you have about investing and explain the benefits of our service at Hedley & Co.

Once you have submitted the form with your details we will be in touch to arrange your free consultation.