Key Benefits of the Teathers App
Free to use
The Teathers App is free to use. There are no charges or commission for buying shares in placements or IPOs through the App.
Participate on the same terms
Onboarded users participate in fundraisings through the Teathers App on the same terms as placement participants, getting the same prices offered.
Access to financial incentives
If companies offer additional financial incentives as part of a fundraising, such as issuing warrants, these are included in deals offered through the Teathers App.
Genuine private investors
The Teathers App is used by genuine private investors. Placing stock through the Teathers App increases the chance of putting shares in the hands of long-term investors.
Companies and their shareholders can be damaged by discounted stock being sold rapidly after a placing (sometimes forward sold), by what are sometimes termed “flippers”. In order to support companies using the App, and other users, the Teathers App operates a strict “no flipping” policy. Although there are no restrictions on the buying and selling of stock, if stock “flipping” is detected then the offending accounts will be closed.
Improved investor relations
Giving existing shareholders open and transparent access to fundraisings improves investor relations.
The Teathers App is a mobile application, designed to give private investors access to placements and Initial Public Offerings (IPOs), predominantly on the London Stock Exchange’s Alternative Investment Market (AIM). The Teathers App is free to use and is available on iOS smartphone devices. A version of the Teathers App will be released to Google Play in early Q2 2017.
Benefits of the Teathers App for Retail Investors
The Teathers App is a free-to-use, execution-only service. Onboarded users of the Teathers App are able participate in placements and IPOs on the same terms as institutional investors. If a company offers additional financial incentives for participating in a placement or IPO (e.g. warrants), these too are included in deals offered to onboarded users. There are no dealing charges or commissions when buying shares in placements or IPOs through the Teathers App.
Benefits of offering deals through the Teathers App to Companies
By offering fundraisings through the Teathers App, companies benefit from broadening their reach to a wider audience of private investors, thus increasing their ability to raise funds. The Teathers App offers a low cost alternative to running an Open Offer, yet still allows companies to offer share issues to existing shareholders. This can help a great deal with strengthening relations with existing shareholders, and to improve sentiment in the secondary market by private investors speaking positively about their investments.
Why Brokers should work with the Teathers App
The Teathers App presents a positive opportunity for brokers to improve their service offerings to corporate clients. For firms that already operate Private Client Broking (PCB) services, the Teathers App can help fill placements, offer supplementary fundraisings (such as Live Market Bookbuilds), or provide a branded white label version of its service. For those firms that do not offer PCB services to the retail market, the Teathers App can help fill that gap directly.