1. What happens to my investment during an IPO?
When the company you invested in undergoes an Initial Public Offering (IPO) or public listing, the SPV you invested through will convert its private shares into publicly traded shares. These shares will then be transferred to your Bnk To The Future (BF) account in the public shares section. A corporate action fee, as outlined in our fee schedule, will apply to this process.
2. How do I access and manage public shares after an IPO?
To manage your public shares, you must upgrade to Tier 2 and open an account with our public shares broker. Before the IPO, we will provide you with documentation to complete the process. If you cannot qualify for a brokerage account, we will explore alternatives, such as opening a custody account or facilitating an over-the-counter sell order through our partners. Additional fees may apply, as outlined in the public shares section of our fee schedule.
3. Do I directly own shares in the company after an IPO?
No, the shares are held indirectly through the SPV, and you do not have direct ownership. After the IPO, the SPV will hold the listed shares with a designated custodian. Custody fees will be charged monthly to your USD account and deducted automatically. If your balance becomes negative, assets in your account may be liquidated to cover outstanding fees.
4. Can I sell my public shares?
Yes, but only whole shares can be sold through a market order (limit orders are not available). Sales will be executed on dates specified in the stock sell order form. Fractional shares cannot be sold; any remaining fractions will be charged as a fee. Brokerage fees, as outlined in our fee schedule, will apply to all sales.
5. Are there any restrictions on selling public shares?
Yes, there may be holding periods or restrictions imposed by the investee company’s bylaws or shareholder agreements. These could delay the sale of your shares. BF and its entities are not responsible for delays caused by these restrictions.
6. What additional fees should I expect during or after an IPO?
You may incur the following fees:
• Corporate Action Fee: Charged for the conversion of SPV shares to public shares.
• Custody Fees: Charged monthly for holding public shares with the custodian.
• Brokerage Fees: Charged when selling shares through the BF public shares broker.
• Holding Fees: If shares are held for extended periods, fees may be payable in shares or deducted from your account.
If your account balance becomes negative, assets may be liquidated to settle outstanding debts. These fees are detailed in our public shares fee schedule.
7. Is there a guarantee my investment will result in an IPO?
No, there is no guarantee that the company you invested in will achieve an IPO or become publicly tradable. Private equity investments are not readily marketable, and it may take a long time to realise a return, or none at all.