Placings and IPOs

Austin Review of Capital Raising and Dematerialisation

This article represents the views of its author and not necessarily those of ShareSoc. It’s the mid-summer doldrums in the stock market and with investors having more time on their hands, what better time to issue a 265 page document entitled “UK Secondary Capital Raising Review” (see link below). This document covers a number of very important issues to investors after a review by Mark Austin as Chair of a committee that has looked at the way the UK stock market operates ...

Prospectus Publishers off the Hook

This article represents the views of its author and not necessarily those of ShareSoc. The Government has published how it proposes to reform the Prospectus Regime. Among the welcome changes are the ability to omit a prospectus when shares are being issued to those who already hold equity securities in the offering company, subject to certain conditions, including that the offer is made pro-rata to a person's existing holding. The need for a prospectus introduced a costly barrier to the issue of shares ...

Electric Vehicles, Pod Point IPO and Bulb Rescue Cost

If the Government has its way, we’ll all be driving electric cars (EVs) soon. One of the concerns of drivers though is they might run out of battery power so the provision of chargers is of key importance in driving acceptance of electric cars. There is clearly a big potential market for chargers, not just in homes but also in public places, at office car parks, supermarkets and other venues. One of the providers of chargers is Pod Point Group (PODP) who ...

AIM market statistics

by Cliff Weight, Sharesoc Director. Allenby have just published this very informative review of AIM: http://www.allenbycapital.com/research_1214_2120899233.pdf which contains many interesting statistics. The AIM market is at the same level it was 20 years ago, but the journey between has been very volatile. However the last 5 years, with the exception of last March's blip, has been most encouraging. It may be that fewer scandals than in the past have occurred. However ShareSoc is still campaigning hard to get better regulation of the AIM ...

Laggard DDDD – 4D Pharma placing with no Primary Bid individual offer

By Cliff Weight, ShareSoc Director. I hold shares in DDDD. I am not sure if I am happy or angry with 4D Pharma. Duncan Peyton (Chief Executive Officer) and Alex Stevenson (Chief Scientific Officer) have each subscribed £725,000 for shares in the placing, which in total raised £20m at a price of 110p. Their commitment and increased skin in the game is excellent and praiseworthy. The share price this morning is 118p. So those who invested at 110p have a modest gain of 7%. However ...

UK Listing Review – What’s It All About?

You may have noticed in the Chancellor’s Budget speech that he announced that the FCA will be consulting on Lord Hill’s review to encourage companies to list in the UK and on changes to the listing and prospectus rules. This article gives a summary and some comments on what is proposed. The reason for the review is given as a decline in the number of companies listed in the UK with many of those listed being “old economy” businesses. Too few world ...

Don’t let the governance guard down in IPO razzmatazz

ShareSoc Member Barry Gamble has contributed this article. Background My recent Financial Times letter  “Don’t let the governance guard down in IPO razzmatazz” argued against relaxation of the governance requirements under the listing and AIM rules. Thirty years ago the scandal surrounding the business affairs of publisher Robert Maxwell prompted the Cadbury report. This defined corporate governance as “the system by which companies are directed and controlled.” Numerous other reports, directives, rules, regulations, prescribed checklists and best practice guidance have followed since. This confection, including ...

Retail Investor Participation in IPOs – A Good Thing?

Shares magazine have reported that the CEOs of major platform operators AJ Bell, Hargreaves Lansdown and Interactive Investor have written to Government Minister Jon Glen asking him to consider the rights of retail investors in IPOs. Long gone are the days when new company listings were advertised in newspapers and retail investors could subscribe, and frequently “stag” the issue to make a quick profit. Nowadays institutional investors are typically offered shares in a placing and retail investors are excluded from participating. The ...

Invinity Open Offer, Ideagen, and AJ Bell Results

I have recently taken a strong interest in those shares that are involved in electrification of the world. It’s not just the UK Prime Minister who wants to save the world from global warming and air pollution with Joe Biden likely to be much more environmentally conscious than Donald Trump. Those companies or trusts that are involved in alternative energy sources such as wind and solar, and systems to manage the fluctuations they impose on the grid, are of particular interest. One ...

Do Spivvy PE Funds IPO Their Investments at Inflated Prices? – and HM Treasury Consultation UK Listings Review

The AA 86% share price decline, coming on top of the Saga and Aston Martin makes me wonder if PE firms and others are exploiting those retail investors willing to buy into a fashionable story. I have to admit to losing money on Saga, whose share price is down 90% from its 2016 high. My mother-in-law was a huge fan of Saga and she gave me a present of Saga membership when I was 50, so when they were floated, I and ...

Continued strong fundraising activity on AIM

Allenby Capital, whose CEO Nick Naylor spoke at ShareSoc's Investing Masterclass on Remuneration, have just issued their quarterly update which shows the way the AIM market continues to help companies requiring capital. AIM is playing an important role in these difficult Covid times, writes ShareSoc Director Cliff Weight. Key points in the report: AIM continued its strong fundraising performance in Q3 2020. By the end of September, the total funds raised year to date of £4,085m had already surpassed the £3,997m raised ...

Pre-Emption Group (PEG) extends the easing of its issuance guidelines

Cliff Weight, Director, ShareSoc gives his personal views below which may not necessarily reflect ShareSoc's view. UK-listed companies hit by Covid-19 are being given an additional lifeline as the Pre-Emption Group (PEG) extends the easing of its issuance guidelines, allowing more share capital to be raised from shareholders. The PEG, the affiliate of the Financial Reporting Council that provides guidance on fundraisings and rights issues, has confirmed that the additional flexibilities put in place at the height of the pandemic will be extended ...