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New Issues

23/07/2019 06:53p.m.
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The New Issues process explained

A "new issue" of securities is an investment opportunity which can include bonds and other debt securities, or share offers (also known as Initial Public Offers or IPOs).

Click each section below for more information about the New Issue process:

Pre-offer Period

When we are involved in the distribution of a new issue we invite prospective investors to pre-register a no-obligation interest in participating in the offer. This can be done by completing your details online through the New Issues page. We will ask you for your Client Account Number (if you are an existing client), contact information, and you will have the opportunity to express to us your possible level of interest in the offer ("Expression of Interest").

Pre-registering will ensure:

  • you are kept informed about the offer as it progresses
  • you receive a copy of the offer document once it is available


An "Expression of Interest" is how much money an investor might want to invest in the issue, should they be satisfied with the terms of the offer. An Expression of Interest is indicative only and does not involve an obligation of any kind (either on the investor to invest, or any assurance that we will be able to provide access to the issue for that amount). However, indicating an Expression of Interest will assist us in determining the level of stock we might require to satisfy our clients.

Offer Document

The offer document may be a prospectus and/or an investment statement which contains comprehensive information about the company and the terms of the offer. The offer document also contains the application form to apply for the securities.

If you pre-registered your interest in the offer through us, we will accordingly post you a hard-copy of the offer document once it becomes available. Otherwise during the offer period you may request an offer document be sent to you or you may be able to download an electronic copy from our website.

Firm Allocation

After the offer document has been registered and we have been allocated a portion of securities for distribution, we will then invite prospective investors to secure a firm allocation in the offer once they have received and considered the offer document.

A "Firm Allocation" is a commitment from us to reserve an amount of stock in an issue for an investor. The Firm Allocation process allows us to get a greater understanding of what the investor actually wants to do, and what we can provide for them, after they have had the opportunity to view the offer document.

Important:Therefore, if an investor wants to participate in a new issue it is important for them to contact us to request a Firm Allocation - even if they have already provided an Expression of Interest.

When we are distributing new issues we endeavour to treat all investors as equitably as possible; we distribute using the Firm Allocation methodology because it is the best way for us to provide certainty to an investor, and comfort to us, that we will meet our obligations to an issuer.

Application & Payment

Once you have secured a firm allocation, you will then need to complete the application form which is usually situated at the back of the offer document. You will be asked to provide certain personal information which may include:

  • Your personal details such as name, mailing address, phone number and email address
  • Your IRD number
  • Your bank account number - to pay for the securities and/or receive dividend/interest payments
  • Your Common Shareholder Number (CSN) - if you have a CSN ensure the names registered to the CSN and the names on your application form match exactly. If you don't have a CSN, you'll be allocated one when you apply


You will also be required to elect a payment method which will generally be:

  • by direct debit (a one-off authorisation to deduct the funds from your bank account)
  • by cheque


Important:If you authorise a direct debit from your bank account it's important to make sure your bank will allow your account to be debited. Whether paying by direct debit or cheque, ensure that you have sufficient funds available as the transaction will be processed as soon as your application is received by the share registry.

Once you have completed filling out the application form and have arranged payment, please forward your application to us prior to the due date we specified.

Allocation of Securities

After we have received and verified your application we will forward it on to the Registry for processing. Once they have processed and allotted the securities (dependent on the Allotment Date), you will be sent a statement confirming your new holding which may occur after the issue has closed.

Note:Securities acquired through a new issue will not be reflected on your portfolio because the transaction is processed externally. You can easily manually add the acquisition by following these instructions.

For more information about the New Issues process, please contact the Wholesale Dealing team at Direct Broking:

0800 800 372 or wlgdealing@directbroking.co.nz