What is the difference between an Intermediaries Offer and a Direct Retail Offer?

In a Direct Retail Offer, the company offers its shares directly to investors, often when its business has a large number of customers or subscribers. The offer is coordinated by a Broker/Investment Bank.

In an Intermediaries Offer, the company relies on brokers or financial advisors (referred to as an ‘Intermediary’ or ‘Intermediaries’) to source investors for the IPO. Each Intermediary will offer shares to their retail investor clients and receive orders from those clients. The Intermediary, acting on behalf of each underlying client, will submit one aggregated order to the Broker/Investment Bank that is running the transaction.

SyndicateRoom acts as an appointed Intermediary in relation to such offers undertaken on the SyndicateRoom platform. To apply for shares in an Intermediaries Offer, each investor needs to have an account with SyndicateRoom (or another appointed Intermediary).

 

Intermediaries offer flow chart


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