After you’ve placed your bid, Stake will take care of the rest. There’s no need for you to create additional accounts or take any extra steps – you can sit back and wait until your allocated shares land in your Stake portfolio. 

For further information on how to bid, you can read the Stake blog article here.

If you have any questions about your bid, please contact [email protected] 

Your AUD on Stake

When you submit a bid for an amount of IPO or Placement shares, Stake will place a hold for that amount on your AUD buying power – just like when you place a buy order for other stocks. This is to ensure you’ll have enough balance for settlement if your bid is successful.

How shares are allocated

Once bidding closes, Stake will let the Lead Manager (the broker assisting the company in issuing its IPO or Placement shares) know how many shares Stake customers have bid for. The Lead Manager also receives other bids from outside of Stake. They will compare the total bids they receive to the amount the company was aiming to raise and give Stake an allocation of shares.

If there was a lot of demand for the shares and the IPO or Placement was oversubscribed (meaning the Lead Manager received more bids than the company was looking to raise) there will be a ‘scaleback’: Stake won’t be allocated the full amount of shares customers bid for. In this case, Stake aims to allocate each customer the minimum bid amount, and then use the remaining allocation to fill each customer’s bid by the same %. 

In the event that there is not enough allocation to cover all minimum bid amounts, Stake will allocate the minimum bid amount to each customer starting with the earliest bid, until the allocation is exhausted. This means that if an IPO or Placement is oversubscribed, you may not receive the full amount you bid for. Occasionally, the company will also cancel their plans to issue shares. Any amount you bid for that doesn’t get allocated will be returned to your AUD balance.

When the allocation has been finalised, Stake will send an email letting you know how many IPO or Placement shares you’ve secured. About a week before the shares get listed, you’ll be able to view them as holdings in your portfolio on Stake (although they won’t be available to trade until the listing date).

Stay updated

Depending on the deal, the process above usually takes several weeks for IPO shares, or several days for Placements. Stake will email you updates, including when you’ve been allocated shares, and when the shares start trading. You can also check your bids in progress in the ‘Active orders’ section of your Stake app. If you have any questions about your bid, you can contact Stake’s Capital Raises team by emailing [email protected].