Digital wealth manager Bestinvest has announced a new partnership which will allow customers of the firm to participate in IPOs and secondary offerings.
Bestinvest IPO Investing
Bestinvest has announced a new partnership with PrimaryBid which opens up the world of new issues to Bestinvest clients. Bestinvest was founded way back in 1986 so it’s perhaps surprising that the firm hasn’t explored this space until now.
In partnering with PrimaryBid, however, they have made the process of applying for new issues and secondary placings as straightforward as possible.
Jason Hollands, Managing Director of Bestinvest, said:
“We’re pleased to be able to offer this as a new feature as part of our ongoing programme of improvements to Bestinvest.
Since the heyday of the large privatisations in the eighties, private shareholders have gradually become squeezed out when it comes to getting access to IPOs and new share issues. These are now typically undertaken through placements and book builds among institutional investors.
“The great thing about teaming up with Primary Bid is that the service enables private investors to invest in new share issues on the same terms as institutional investors and not as second-class citizens.
Who are Bestinvest?
Bestinvest is part of Evelyn Partners one of the UK’s largest wealth management companies with almost £55.0 billion of money under management.
Evelyn Partners can trace its heritage back over 180 years. Bestinvest is a newer business and somewhat smaller in scale administrating some £3.0bn on behalf of its 50,000 plus clients.
How can you invest in IPOs?
To invest in IPOs Bestinvest clients simply need to link their existing Bestinvest account with PrimaryBid by creating an account there and adding their Bestinvest account number.
You can create an account at PrimaryBid by clicking on a dedicated link on the Bestinvest website.
You will need to provide PrimaryBid with details such as your name and address, date of birth, nationality and NI number.
Any new issue applications you make via PrimaryBid will be paid for from and settled into your Bestinvest account.
Do bear in mind, however, that you will need to have sufficient funds in your account to pay for new issues. And that all applications made via PrimaryBid are binding and it’s not possible to cancel an order once placed.
PrimaryBid & the LSE
PrimaryBid has helped manage over 270 share offers for UK-listed companies from members of the FTSE 100, the FTSE 350 and AIM indices.
Including issuers such as Ocado, Taylor Wimpey and Aston Martin Lagonda.
Most recently PrimaryBid has helped to raise money via follow-on or secondary issues for Big Yellow Group and Severn Trent.
UK and European IPO markets
The UK and European IPO market has been doldrums of late. The London Stock Exchange was keen to entice ARM Holdings to list in London.
However, its parent company, SoftBank, had other ideas and chose to IPO the business in New York.
According to data from consultants Ernst and Young IPO activity in the UK and Europe, in 2023 to date, is below levels seen in 2019 with just €8.40 billion, or £7.34 billion having been raised.
None of Europe’s top 5 IPOs this year was listed in London, and there were only four IPOs on the London Stock Exchange in 2023 that have had a value of €30.0 million (£26.20 million) or greater.
Jason Hollands added:
“While the IPO market has been subdued over the last couple of years due to economic uncertainties, this may well lead to a flurry of companies coming to the market having bided their time when conditions improve. Therefore, introducing this service will enable Bestinvest clients to participate in those opportunities as they arise.”