Investing in IPOs and placings
Fidelity offers a wide choice of funds, ETFs, and shares in individual companies. In contrast, the IPO and placings market has historically tended be less accessible to the general public, favouring instead larger investors. Currently, Fidelity does not offer an IPO or placings service, though investments from these events can be transferred to our Investment Account.
PrimaryBid is a specialist in the IPO and placings market and is one of a new style of company bringing these opportunities to the wider public. If your client has a Fidelity Investment Account then they can potentially participate in these opportunities and, if successful, have those assets automatically transferred to their Fidelity account. Your client will need to provide their Fidelity account number when signing up with PrimaryBid.
Important Information: PrimaryBid is not a Fidelity group company and is not being recommended or endorsed by Fidelity. Customers seeking to use PrimaryBid’s services should satisfy themselves that they wish to take up those services and understand they are wholly separate to Fidelity’s services. Another Fidelity International company, Fidelity Strategic Ventures, is a minority shareholder in PrimaryBid. No payments or benefits are exchanged between any Fidelity company or PrimaryBid. Assets from an IPO/Placing can only be transferred to a Fidelity Investment Account (not an ISA or SIPP). Some assets from an IPO/Placing may not be able to be transferred to a Fidelity Investment Account.
How it works
Signing up with PrimaryBid
Your client can open a PrimaryBid account on their website or by downloading the app to their phone or tablet. When asked for a broker, they can select Fidelity and enter their Fidelity Investment Account number. Your clients should familiarise themselves with PrimaryBid's terms and conditions on their website.
Once signed up with PrimaryBid your clients will get notifications of new IPOs and placings as soon as they go live.
Subscribe to an offer
Your clients can subscribe to an offer on PrimaryBid using their debit card (note that cash in the investment account cannot be used for this). If successful, then as soon as the shares are settled, they will be transferred to your client’s Fidelity Investment Account.
What happens next?
Once your client has taken part in an event, if they are successful in being allocated shares then they’ll be transferred to their Fidelity Investment Account within a few days. Note that shares from some events might take slightly longer than others to arrive in your Fidelity Investment Account.
Once the shares have been settled, your client will be able to see them in their Fidelity account summary when they log in. You will also be able to see them when you view your client in our secure site.
If your client is not successful, then PrimaryBid will refund any money paid back to your client’s bank account.
Some shares cannot be held in a Fidelity Investment Account. In this case PrimaryBid will contact your client to outline options.
Note that PrimaryBid also supports IPOs and placings in investment trusts. If your client successfully subscribes to one of these events, then the shares will be transferred to your client’s Fidelity account as normal. Some investment trusts may need to pass Fidelity's due diligence before your client can buy extra shares for your investment account after the initial offering.