IPOs and new issues

IPOs are the most well-known type of new issue. Companies going public will set a price range or fixed price for their shares, and you can apply for an allocation. Keep in mind that popular IPOs may be oversubscribed, meaning you might receive fewer shares than you applied for, or none at all.

New investment trusts and funds sometimes offer their shares or units at launch, often with reduced or zero initial charges. These launches give you the chance to invest in a new strategy or back a fund manager from the ground up.

Treasury bills (T-bills) and gilt offers are both UK government-backed bonds. T-bills are short-term investments that mature in less than a year and are issued at a discount, paying their full face value at maturity. Gilts are medium- to long-term government bonds that pay regular interest and return their face value at maturity. You can access T-bills and gilts through our platform when new issues are made available to AJ Bell.

Sovereign, Supranational, and Agency (SSA) bonds and corporate bond offers are occasionally made available to retail investors. These fixed-income bonds pay regular interest and aim to return your capital at maturity, making them popular for income and/or ESG focused portfolios. SSA bonds are issued by institutions such as the World Bank for the purpose of socio-economic development. 

Venture Capital Trusts are publicly listed investment trusts that allow individuals to invest in smaller, high-risk companies. These trusts aim to support the growth of early-stage businesses by providing them with capital, and in return, investors may receive tax-free dividends and capital gains. VCTs can be a suitable option for those looking to diversify their portfolio, though it’s important to consider the associated risks and the long-term nature of these investments.