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Started by cervantes Mar 12 2010, 19:28
cervantes
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raysor
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Mar 13 2010, 09:33
Most of the flotations now are done privately through one or two brokers and you have to do a bit of work to get them (if at all). There has just been a float of Supergroup by Seymour Pierce. You will find proposed flotations, I think, in Investors Chronicle and there is an IPO page on the LSE website. If you have your own broker he will scout out new issues as well. On our homepage you will see Redmayne mention some IPOs.
A lot of the IPOs (and secondary placings) are in smaller companies and a lot on AIM (resource companies). If they are secondary placings the info. cannot be put in the public domain so you need to be made an insider if you are told about them. Also many are high risk so your broker's file on you would have to indicate this fact and that you are interested in placings. There is some rule about investors numbers being maximum of 100 (not completely sure how that applies).
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cervantes
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Mar 13 2010, 16:31
I see an ad in today`s paper,similar to years ago,Fidelity China. Any opinions ?
Cervantes.
Last edit: admin Mar 13 2010, 19:58
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raysor
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Mar 13 2010, 22:38
Fidelity China is an investment Trust (closed ended) and I am not sure but it seems to be being offered by Hargreaves Lansdown who charge an initial commission and an annual renewal commission. Not 100% certain about this because, as usual, their website is over complicated. Investment trusts are more complicated than at first glance as the share price is always at a discount to net asset value but this discount fluctuates quite a bit depending on investors perception of the market. The managers can also gear up its investment by borrowing cash against its assets. From HL website:
This new China fund is an investment trust. Investment trusts are closed-ended funds, which means they cannot easily take in new money after launch and they trade like shares. For this reason the fund will not appear on our Wealth 150, which only includes unit trusts, but we shall keep clients who invest through Hargreaves Lansdown apprised of our views with
regular updates. Anthony Bolton wanted an investment trust to provide a stable portfolio and to ensure the fund didn’t grow too large to manage effectively.
Investment trusts are investment companies.
Once launched, its shares will trade on the London Stock Exchange and you will be able to buy and sell them just like any other share. You will be given a price when you deal, and it will also be shown in the Financial Times and on our website. The price will be determined by supply and demand, and won’t necessarily reflect the underlying value of the trust. When the demand for shares is high, the share price can be higher (at a premium) than the underlying value of the investments. Conversely when an investment trust falls out of favour, and there are more sellers than buyers, the share price can fall to a discount, a feature which increases the risk profile of investment trusts.
Investment trusts can also borrow money to invest, ‘gearing’ the returns. Anthony Bolton will be able to use bank loans, overdrafts and derivatives to borrow up to 30% of the value of the fund. He can also use shorting. If he gets it right this could help boost gains, but it can also magnify losses. If you apply at launch you will buy the same assets as you would if it was a unit trust. The difference being that thereafter the shares may trade at more (or less) than the value of the underlying portfolio. For these reasons, we suggest that if you are interested, you act now, and only if you are investing for the long term. Peter K Hargreaves | Chief Executive
Last edit: davids355 Mar 25 2010, 08:27
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cervantes
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raysor
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Mar 14 2010, 12:04
I think you have to look out for possible issues and then track down a projected timetable from there.
According to Redmayne's site Supergroup retail offer is expected to open on 15th March. (see link on our home page.)
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raysor
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Posts: 1011
cervantes
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Posts: 136
raysor
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Mar 27 2010, 20:43
Let us know.
We are looking at several ideas: A series of tutorial videos on Youtube, expanding the Beginner's Corner or maybe some meet-ups at something like the Proactive company presentations.
Last edit: davids355 Mar 28 2010, 10:24
Posts: 1011