IPOs

Improve Access for Retail Shareholders

Give Growing Companies Better Access to Retail Shareholders to Boost the UK Economy ShareSoc News Item by Mike Dennis, Director A recent survey1 of ShareSoc members was undertaken in conjunction with Aquis Stock Exchange (AQSE) and it has revealed that many individual investors do not feel they have good, equal access to growth stocks. Key findings of the survey1 55% of individual investors polled feel they don’t have, or aren’t sure they have, good access to growth companies Over 80% of respondents feel individual ...

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 ...

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 ...

Daily Mail, 24 Nov 2020, Roadside Recovery Firm AA Banks on £218m Private Equity Rescue

https://www.thisismoney.co.uk/money/markets/article-8979017/AA-banking-218m-private-equity-rescue.html quotes ShareSoc Director Cliff Weight who questions whether PE funds opportunistically sell their assets at inflated prices: Cliff Weight, director of small shareholders campaign group ShareSoc, said the AA's performance would raise further questions about private equity-backed floats in future. He said: 'In 2014 the private equity firms decided that they were better off selling the AA rather than holding on to it, after loading it up with almost £3bn in debts. It was floated with all the encouragement of the financial services ...

HSS Hire and other IPOs

I am sometimes accused by my wife and colleagues of being a "wet blanket". In other words immune to the excitement of new ventures or ideas. But when it comes to IPOs that's probably the right frame of mind to have. I shall proceed to throw some cold water over the IPO of HSS Hire which is listing in early February if all goes according to plan - the prospectus for which is now available. Academics Elroy Dimson and Paul Marsh have recently ...

Royal Mail and Myners’ report on other Government sell-offs

The Government sell-off of a major stake in Royal Mail was controversial in many ways. It proved to be even more so when the placing price of £3.30 was rapidly eclipsed by a market price which rose to as high as £6 although it's been mostly downhill since (at the time of writing it's 420p). The long term holders who were given priority in the share allocation soon turned out to be anything but with 44% of the shares changing hands ...