The Australian Shareholders Association
The Pre-IPO market is increasingly gaining traction with several funds and businesses tapping into private markets.
Investing in the pre-IPO market can be lucrative but comes with different risks. In this article, we speak with Access Investing’s Brett Tucker and Mark Humphery-Jenner, Associate Professor of Finance at UNSW Business School about the state of the pre-IPO investing market, factors to look when considering these investments and red flags to avoid.
Interview with Alan Kohler of Eureka Report
Levelling the Pre-IPO Playing Field for Retail Investors
From an interview with Alan Kohler of the Eureka Report, published on 8 July 2021
Brett Tucker, who along with a few associates, has launched a business called Access Investing and the idea is that they will invest in pre-IPO companies, that is to say companies that are planning to float. They would invest in them before they float and they would distribute the shares in them to their investors after they float, so whatever they invest in, you would end up as a shareholder in that company that’s now listed, but you’ve bought the shares or got the shares at a price that’s pre-IPO, which is typically, he says, an average of 25 per cent below the IPO price.
Our feature article by Stockhead
Investing in pre-IPO companies is no easy feat unless you’re a sophisticated investor, but Open Investing wants to change that.
A key advantage of obtaining sophisticated investor status is that you can invest in companies looking to raise pre-IPO funding before they issue a detailed prospectus.
But with no such requirement for sophisticated investors, “sophies” are typically the only ones to get access to those investments at that early stage.
And as Open Investing managing director Brett Tucker notes, it’s those same investors that share the spoils time and again.
Business Daily Media write-up
Open Investing Limited (“Open Investing” or “the Company”) is pleased to announce the successful lodgement of its Prospectus with the Australian Securities and Investments Commission (ASIC) in order to raise up to $10 million.
Open Investing Founder and Managing Director Brett Tucker identified an opportunity to disrupt the market for private company investing through a novel investment process within a public company structure.
Effectively the goal is to recycle all cash invested in Open Investing in the form of ‘wholesale priced’ company shares which, due to the uplift in value as each company reaches IPO, are worth substantially more than the cash each investor originally deposits – reflecting the rewards (and risks) of private-to-public company investing.
