Private Company Share Offers
As an established stockbroker we have access to an extensive network of City institutions, which allows us access to opportunities that might otherwise be unavailable to our clients. In many ways similar to Crowdfunding, these offers are usually small in size and therefore carry a much higher degree of risk.
At Interactive Investor we only select companies that have appointed a broker nomad and are planning to list on an exchange within the next 6-18months. This allows our highly experienced clients, classified as Sophisticated Investors, the opportunity to invest prior to the official IPO process. There is a huge degree of risk here as the IPO may not happen and there is no underlying liquidity allowing you to sell you shares. Many sophisticated investors, however, will assume the inherent risks for the potentially higher return.
All supporting documentation must be read and fully digested before making any decision to invest in any private company.
What are Private Company Share Offers?
Private Company’ share offers are only available to UK ‘Sophisticated Investors’ as smaller company shares can be far riskier to invest in than other instruments. Small companies will look to raise capital for the same reasons large a company do but through taking the non-IPO route it is much less arduous and more cost effective to do so this way. When investing in private companies you must note that these are not listed instruments so it may be difficult to sell your shares. Be aware that past performance of this company and sector should not be seen as an indication of future performance. You may lose some or all of the money that you invest in these shares.
Why Invest in Private Company Share Offers?
If investing in share IPOs, where a private company is listing on an open exchange, is seen as getting in at the ground level, with private company investments you are getting in at the basement. At Interactive Investor we only offer access to new issues from broker sponsored private companies looking to fully IPO within 6 to 24 months. In addition, one of the additional benefits of investing in private companies is that many will allow investors tax relief under the Enterprise Investment Scheme. For further information on EIS relief please click the following link.
Be aware of the risks. There is naturally the potential for a significant rise in the value of your investment if the company were to IPO in the future but there is no guarantee that it will and you may find it difficult to sell your shares or indeed lose all of your investment.
Process for investing in Private Company Share Offers
In order to receive the documentation regarding new private company share offers clients must be pre-approved on application via our Self Certification Sophisticated Investor form. Through clicking the 'Further Info' link below you will be required to register your interest and complete the Sophisticated Investor form. If your application is approved we will send you the documents.
Call us on 0845 200 36370845 200 3637 to place an order on approval. There is currently no electronic facility online to invest in this type of offer.
Investing in small businesses carries significant risk. The value of the investment can go down as well as up and this could result in an investor incurring a total loss on their investment. The investments are not freely marketable or liquid and this may restrict the investor’s ability to exit any investments made. These offers are targeted at investors who understand these risks and are capable of making their own investment decisions.
There are currently no new issues available.
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Please be aware of the risks involved. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. Past performance is no guarantee of future performance. Tax treatment depends on your individual circumstances and may be subject to change. If in any doubt, please seek advice.
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