An issue of shares managed by an agent on behalf of the issuing company. An issuing house manages the offer, receiving acceptances and allotting the shares before passing the proceeds, less a fee, on to the company.
An offer to the public by, or on behalf of, the holders of securities already in issue.
or subscription An invitation to the public by or on behalf of a third party to purchase securities of the issuer whether already in issue or previously allotted. An offer for sale may be done by tender, seeking applications for the securities at prices chosen by each applicant, the mean of which determines the eventual issue or sale price
One method by which a company can issue new shares and gain stock market listing. The company or its advisers invite the public to buy shares not yet in issue at a given price. Sometimes there is a minimum subscription level and if subscriptions fall below this level, the issue will be aborted.
Historically, the most popular form of new issue in the UK for companies bringing their securities to the stockmarket for the first time. The company offers its shares to the general public.
A method of bringing a company to the market. The public can apply for shares directly at a fixed price. A prospectus containing details of the sale must be printed in a national newspaper.
An issue of shares by a company where investors are invited to buy the shares from an issuing house which has subscribed for the shares from the company. The issuing house may also buy shares from existing shareholders in the company and sell these on to investors as part of the new share issue. In rare circumstances, the company may issue no new shares and the issuing house only sells on shares held by existing shareholders. A method of issuing shares when a company is obtaining a listing for the first time. See also Offer for Subscription, Intermediaries Offer, Placing and Introduction.