Doesn’t seem like FreeTrade will be one of the brokers utilising PrimaryBid any time soon so you’ll need to get any new shares to an account you have with a broker on the PB list
I still live in hope that this changes soon.
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Someone posted this on my discord:
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LON:SAE
SIMEC Atlantis Energy Limited
Offer price
12p
Discount
34.25%
Gosh darn it! Finally a company I was interested in appeared on Primary Bid - went live at 7am and at 11am it’s already closed, presumably oversubscribed? I missed out because I was too busy trying to find away to get it into Freetrade or my AJBell LISA. Doh!
I’ve been watching the raises on PrimaryBid for a while and in most cases the share price drops to the discounted price straight away.
LON:SAE closed at 18.25p yesterday and currently trades 13.95p and you could have bought it for as low as 12.50p earlier today. The discounted price was 12.00p. Buying it on the secondary market also means you can have it in your ISA.
I like the principle behind PrimaryBid. Private investors should have the same access to raises as institutions. But I don’t see the practical benefit. The discount often doesn’t amount to much and you have to make an investment decision in just a few hours (given the need for a capital raise is usually a warning flag I’d personally like more time).
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Excellent points - every single one of them. I could kick myself, I think I just got caught up in the “omg limited time exclusive offer” of it all, something which I’ve avoided in the past but my mammal brain is currently operating on only 2 hours of sleep!
Thanks for reminding me about the reality of the situation.
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You can’t put it directly into your isa when buying from PB. You HAVE to put it in your GIA first and then bed&ISA it over with your current provider. That way your provider can calculate your isa subscription for the tax year. It’s also in the PB T&Cs that they won’t send it direct to an ISA.
I read somewhere that both FT and T212 had asked NOT to be put on the PB broker list.
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Also : Maths
Also : Has anyone used PB? I have. It was bad. It’s been over a month since the offer I subscribed to was meant to deliver shares - still haven’t got them!!
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Just reviewing my PrimaryBid ‘demo’ subscription for anyone thinking of using them:
New shares admitted to trading 16th July 2020
Today : 11th Aug 2020
Current status : Nowhere to be seen
Comms from PB : None
Emails/Intercom queries : 2
Overall rating : 0/10
This company honestly has no reason to exist. It’s goal sounds noble, sure but it’s operations rely on ‘old’ trade and settlement processes with brokers who just don’t want the additional headache. There is no ‘tech’ here. There is nothing new barring ‘letting’ retail investors participate and charging the issuing company (I assume) a healthy % for flogging their issuance.
A regulatory change to mandate retail participation would destroy their business model and truly level the playing field.
Has anyone had a good experience with PB? I’m curious.
We’re I in the Operations team at FT or T212 I’d seriously push back on working with them. It’s an admin and PR nightmare you just don’t need to expose your business and clients to. Offer participation in the corporate action yourself - get the out turn direct to your crest account, post to clients, done. Standard corporate action processing. No need for PB to be involved.
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They’re the only way to get involved in public raises, though?
My experience was ok:
- Gore St Energy storage: Primary Bid said shares would be admitted on or before 8 July, Interactive Investor showed a transfer in 8 July, but also says that the transaction completed 23 July, which I suspect is when it showed in my portfolio.
- AFC Energy: Primary Bid said shares would be admitted on or before 6 July, Interactive Investor showed a transfer in 9 July, but II doesn’t show a transaction note. They are sitting in my portfolio though, so {shrug}.
The process was a bit opaque and I couldn’t tell when things were going to happen and whether it was all going ok or not… if it had been large sums, I’d probably have wanted more information or a quicker transaction.
Nope. Your existing (more expensive) broker can likely do it for you. I got involved in the same raise via another broker to test it… they ran it like a standard corporate action… they applied on my behalf in the share placing/open offer… got shares… easy. Standard corporate action.
The issue is brokers are not mandated to. The regulations give them the option to bypass retail investors. Talk nicely to your broker they’ll do it for you.Mine did it for free. But do charge me more annually than £0. So it’s personal choice. I’d rather pay them than PB.
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Can you say which broker you use? Or at least how expensive they are? Is this a standard execution only place (HL, AJ Bell, ii) or somewhere more fancy?
I have got involved in placings/open offers historically via all of those you mention, yes.
But in this particular instance it was via a niche investment broker that primarily works with Financial Advisors.
But any one with a Crest account (say, Freetrade) could get you in on the open offer/placing directly. It’s about 10 seconds entry into their settlement system. It’s just operationally they currently choose not to as other parts of the process are actually far more laborious and open to error and loss. So I perfectly understand why they do not offer it directly. But they could. That’s all I’m sayin’ I’ve done exactly the same for my clients over many years. Open Offers/Placings are absolutely standard Corporate Action processes. Anyone with a Crest account will have seen REG adjustments/credits running through their account. Nothing new here.
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Did you send them the documents as requested by PrimaryBid? Honestly from your last reply it almost sounds like you expected it to take long.
Check with your broker what their timeframes are for share transfers. Maybe it’s time to switch if they aren’t offering the service you want.
Seems everyone else is receiving their shares in line with their brokers timeframe for transfers.
On my part I waited ages for shares in Taylor Wimpey via primary bid but they were responsive to me when I asked what was going on and they arrived in the end
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They always arrive. A lot of it is down to the brokers transfer process
Not at all. I expected it to be ASAP but within the T+5 PrimaryBid state as the common timeframe.
Yes, paperwork to broker. My broker is historically flawless so I’m very reluctant to blame them when the more likely candidate given others experience is PB. But in a court of law I would clearly have to state that option remains statically possible, yes.
I’ve seen others suffer delays, frustration and average customer service so we’ll agree to disagree over the experience of others. I’d say on balance the crowd is generally more negative than positive. But that’s just my reading of the words I see written.
Happy to use them again and document it. I’ll jump in the next offer. I’m sure it will be super smooth sailing. Watch this space.
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Inside information? Curious to know more about how brokers transfer processes hamper the flow. I mean - I can guess, but I’m still curious.
What factors could be blamed -
Stock not traded/setup on brokers platforms ?
ITs without pre sale documentation ?
Mistyped account numbers ?
Outsourced custody message flow complexity?
Brokers simply not responding to trade and settlement requests?
Of course if they ‘always’ arrive then I’ll just sit back and wait for this smooth operation to play out … it has been a month already though …
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You seem to have some more knowledge about the brokerage industry than an average community member.
What are your thoughts about the plus subscription?
What features do you think will be great to see in the plus?
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