Prioritisation of hyped IPOs over quieter IPOs

Freetrade were ready and waiting the morning of the Kanabo and Cellular goods IPOs. These were anticipated IPOs in demand from customers. Neither have held their gains from their day one spikes and are trading down 50% and 60% respectively from their peaks. These companies are currently valued at £88m and £53m respectively. These seem be the IPOs Freetrade are ready and waiting to serve their customer base with - from day one. :leaves:

On the other hand last Friday AMTE Power IPOd on the LSE. Seems to have been completely ignored by Freetrade and hasn’t been onboarded yet. It has made over 31% in gains since the first day of trading, and more importantly held onto those gains. It has a market cap of nearly £110m now (bigger than Kanabo and Cellular Goods), is in the battery/EV space which Freetrade should know would command interest from their customer base and has daily volumes in the millions, so execution shouldn’t be an issue either. :battery:

LSE IPOs should ideally be treated equally, but right now it seems like Freetrade are giving priority preparation, social media acknowledgement, and onboarding to stocks which have so far turned out to be underperformers :chart_with_downwards_trend: while ignoring or being late to the party on stocks which go on to outperform :chart_with_upwards_trend:

If you want your clients to grow their balances “the right way” you should at least be giving them a fair crack at the whip from day one right?!! Same can be said for the slow onboarding of the hottest SPACs etc.

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It wasn’t to do with hype but liquidity sadly.

Ah sorry just realised that was you he was speaking to :joy:.

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Hi James,

Totally understand your frustration and where you’re coming from.

While we were able to add Cellular and Kanabo, which were highly requested, the issues around liquidity on SETsqs became more apparent afterwards. That’s why we weren’t able to add AMTE at this point, and why we have to do some exploratory work to understand how we can add these types of stocks in future.

In terms of US SPACs, we are working with our US trading partner to understand if there are any we have not yet added which meet their eligibility criteria, namely $1bn market cap or 3-month average daily dollar volume must be greater than $0.5 million. I personally conducted the analysis on these, and we hope to have some new ones to add soon.

We will continue adding many new IPOs, hyped or otherwise, including the six US IPOs this week which are not quite as hyped as some other recent IPOs like Roblox etc.

And also our weekly batch of new US stocks when they are made available to us.

We are committed to adding thousands more stocks this year, including many 'unfashionable’ IPOs and others from around the world!

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Hi Sam just to expand on one of your points re. SPACS - are you looking to implement the voting rights and recovery of funds if the SPAC doesn’t come to fruition as discussed elsewhere on the forum:-

and here

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The $BFT vote is later this week, so I guess I’ll find out after that! Would be nice to get an answer from FT either way.
Some of the noise around SPACS is not reassuring for retail investors.

Hi @BobC, sorry for the delay.

We don’t offer proxy voting for now, but it may be something we’re able to explore in future.