This is the first start-up ever that I’ve invested into and opened my eyes into crowdfunding. Thanks to this I found Freetrade.
Out of curiosity how does it look like the process on your side as an investor?
I mean do you have to sell your shares? Do they get passed under the broker that does the IPO?
I’m very curious to know how does it work!
I don’t know as this is my first investment ever that is aiming to float. That link was just shared by another investor amidst the complaints of many investors saying how bad Weswap is when it comes to communication. Had it not been shared, we wouldn’t know!
Once Weswap will send out an official update about it and explains to us what to expect and what to do, then I’ll share it here. For now, I don’t have any idea just like you.
Sounds like a pending entry to Best & Worst Investments
What is the paper gains multiple looking like atm?
Are you likely to sell out, stay the course, or a mixture of the 2? Why?
On their late quarter update last month, they didn’t disclose exact numbers but only graphs which showed that in every aspect - cash, int’l transfers, and buyback are all continuously growing well. They are also very strict with what they share and only said that they are “extremely pleased” with the business performance in this very competitive industry. This is the reason why in the discussion area, there have been so many who kept on posting questions asking for updates and complaints about how bad they are with communication. I guess they’ve invested so much so this is why I have so much more patience.
They’ve just posted an official update about their aim to float and have garnered loads of questions already. I will be reading and gain info as to what’s best for me to choose although I might likely to sell out but we shall see. I find it too early to say this time without knowing much more about it yet. Hoping for the best.
Thank you very much! Already the experience you shared so far it is incredibly interesting!!!
I’m really looking forward to further updates!
On what platform did you buy the shares?
As Diversify was asking once you know more and make a decision it will be great, of course if you want to, to know the reasoning behind it.
It will also be fascinating to know what made you invest in them to start with.
Thanks again and congratulations for your successful investment!
Thanks for sharing all this. Very interesting and I wish you all the best on whichever decision you go with
- I’ve bought shares via Seedrs last Dec 2016.
-Yeah, I’ll share my decision when able. I remember I need to hold my shares for at least 3yrs for EIS relief purpose.
- I invested in them because I used the card myself and was happy with the product so when they sent an email informing us that they’re crowdfunding, I thought it’s a good idea to own some shares of something I already use.
It makes perfect sense! Thanks again for sharing!
Some parts of their update:
What does this mean for investors?
We’re currently working with Seedrs to find the best way to allow investors to purchase additional shares in WeSwap ahead of, or as part of, the IPO process.
Just to recap, when you invest via Seedrs, legal title to the shares in the Company is held by Seedrs as your nominee and you hold the “beneficial interest”. This means that, whilst you own the shares, Seedrs is the shareholder of record with the Company and takes any legal and administrative actions on your behalf.
What will happen to your existing shares in WeSwap?
• On admission, all shares in a new holding company of WeSwap.com Limited will be admitted to trading on the AIM market of the London Stock Exchange. The shares held by Seedrs on behalf of investors will be transferred to electronic form through Crest, the UK-based central securities depository, and will be held via Seedrs’ Broker, Canaccord Genuity Wealth Limited.
You do not need to take any action at this time: You will continue to hold your beneficial interest in WeSwap, via the Seedrs nominee, through Canaccord. It is not possible to transfer your shares to a different Broker as they must remain held by the Seedrs nominee until they are sold.
I’m looking forward as to how things are going to unfold.
I think that’s pretty cool, it’s not often that retail investors are given a chance to invest in a private company this close to the IPO is it?
AJ Bell did, but you’re probs right in that it’s rare:
What I find illuminating about this post is that as crowdfunders we’re still beholden to the decisions of the nominee post-IPO. Timing of a sale is out of our hands
I read that more as: the only way from existing Seedrsy investors to hold those particular shares (and I guess keep the EIS rights attached to them etc) is with Seedrs, but that the investors will be free to sell them on the market. But who knows! :shrug:
I would hope rod is correct on this. You should be able to sell your shares independently but not move them to another broker. Hope so. Assuming there is no pressing reason to do so it is probably best to hold until the 3yr EIS period has expired or you would have to repay you EIS rebate and pay CGT. Why are you not allowed to shift you shares to another broker? Not sure but I imagine part of the reason is because I think Seedrs charge a 7.5% exit fee on the upside of successful investments so they need to keep control of that…(I have never invested via Seedrs so happy to be corrected if that is wrong).
@alex.s It is. I hope Freetrade will do the same when the time comes.
There are so many speculations already and I’ll wait for Seedrs or Weswap to respond before I’ll start absorbing every info so it won’t confuse me as I find the process complex. Others are already mentioning £30 brokerage fees + 0.75%…and also 7.5% Seedr’s fee…etc. I’m just really glad that I get the chance to experience this now so I know what to kinda expect in the future. I find this very interesting and I’m loving it that I’m learning.
Some parts of the recent update:
Following the recent sharp declines in global markets and, in particular, the UK AIM market, the Company has decided to postpone the WeSwap admission to AIM until 2019.
November saw the sharpest decline in the AIM market and this coincided with the critical ‘road show’ and book building period, whereby the Company met with over 50 institutional fund managers.
Whilst the business was very well received by potential investors, the market conditions are such that the quantum of ‘available’ funds and the prospective valuation would have been hit. Fund managers are not investing in new stocks at any real volume at this time, preferring to hold some liquidity within the funds. Several other businesses have decided to postpone their IPOs until next year.
The decision to postpone is not a reflection of any issues with performance. The underlying growth has remained strong.The Company expects to be in a good position to approach the market again next year, having already completed the time-consuming audit and legal work required to list. The business has built very good relationships with key fund managers during the process and will use these to decide the right timing for an admission in 2019.
The objective of the IPO was to raise a minimum of £15 million of long term capital. The business will
require capital to continue momentum through to a prospective listing next summer. The Board is
currently considering the funding options available to the Company and recognises the importance
of delivering strong revenue and user growth year on year. We expect the funding requirement to
be circa £5m.