IPO shares are (by definition) unlisted shares because they’re shares you own in a company BEFORE it lists. Because DriveWealth only deal in listed shares, they couldn’t be part of this. So we’re doing it ourselves (Kiwi Wealth & PCN), with a little help from our new friend ClickIPO.
Hopefully DriveWealth can join us next time, but in the meantime, it means things will work a little differently to how you’re used to investing with Hatch.
For the first IPO:
You won’t pay any brokerage or exchange fees on your IPO shares
You’ll be placing a share request, not an order. Your request won’t be confirmed until the IPO closes
You’ll place a request for an NZD amount (e.g. $1,000 NZD of IPO shares)
You’ll pay for your IPO shares into a different bank account than usual, using a different unique reference code
There won’t be any fractional shares
You’ll be able to cancel your share request right up until the IPO closes, and any payment will be refunded to your NZ bank account within 5 business days.
If you want to edit your request, you’ll need to cancel it and place (and pay for) a new one. Clunky yes, but this is a NZ first y’all!
We’ll let you know once the IPO share price is confirmed. Your NZD will be exchanged to USD using the current rate on that day. It may be different from what it was when you paid for your IPO shares
You won’t receive any interest on the money you use to pay for your IPO shares
The maximum number of shares you receive will be determined by the USD amount your NZD is exchanged into
Any shares you receive during the IPO will be held by PCN - Kiwi Wealth’s custodian until they’re transferred to DriveWealth. It may take up to 5 business days for the transfer to complete. You’ll only be able to see or sell your IPO shares after the transfer is complete.
Even after the transfer is complete, your share request and payment won’t appear in your transaction history. We expect plenty more IPOs to come, and we’ll create a more seamless experience over time.