Initial public offerings and structured investments
The Westpac Share Trading IPO and Investment Centre provides information and access to a range of offers, including upcoming initial public offerings (IPOs). The following outlines the range of methods companies can use to raise capital.
An IPO is when a company issues and/or sells shares to the public for the first time, usually as part of the process of listing on an exchange.
These shares give the shareholder equity – part ownership – in the company. The shareholder can sell the shares on the market at the market price, which will fluctuate with the profitability of the company and other factors.
Under a rights issue, the company offers existing shareholders the right to subscribe to newly issued shares. Each shareholder’s rights allocation will be in proportion to their existing shareholding.
Share purchase plan
Under a share purchase plan, the company invites existing shareholders to purchase newly issued shares that are usually at a discount to the current share price. The offer gives existing shareholders the right to buy the additional shares, but they are not obliged to do so.
Interest rate securities
A company can issue debt and use the funds to underpin the operations of the business. This type of debt is also referred to as an interest rate security. It pays a fixed or floating rate of return in the form of interest or dividends.
The company that issues the debt is known as the issuer. In return for receiving your money, the issuer will usually pay you a specified rate of interest (a coupon) over the life of the interest rate security and repay the initial investment amount at maturity.
For more information about interest rate securities, read Westpac’s educational brochure, ‘Predictable’.
The Westpac Share Trading IPO and Investment Centre also provides information on, and access to, a range of offers relating to structured investments issued by financial institutions.
Structured investments allow you to invest in conventional asset classes, whilst providing packaged additional features such as leverage and or capital protection. Structured investments are issued by financial institutions to provide investors with an alternative way to achieve unique risk return profiles.
An example of a structured investment is a self-funding instalment warrant, which allows you to buy shares on a part-payment basis. A portion is paid upfront (the funding cost plus a capital contribution), with the final payment delayed to a later date. The final payment is the loan amount extended to the buyer of the instalment.
Key features of Westpac Share Trading
- Gain access to IPOs.
- Gain access to company debt capital raisings.
- Gain access to structured investments.
- Use our quick and simple application for offers through our online IPO and Investment Centre.
Things you should know
This website is directed to and for the benefit of Australian residents who are located in Australia only. Share trading through this website is a service provided through Westpac Securities Limited ABN 39 087 924 221 AFSL 233723 by Australian Investment Exchange Ltd ABN 71 076 515 930 AFSL 241400 ("the Participant"), a market Participant of the Australian Securities Exchange Limited (ASX) and Chi-X Australia Pty Ltd, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited.
The information on this website has been prepared without taking account of your objectives, financial situation or needs. Because of this, you should consider its appropriateness, having regard to your objectives, financial situation and needs and, if necessary, seek appropriate professional advice. If a Product Disclosure Statement is available in relation to a particular financial product, you should obtain and consider that Product Disclosure Statement before making any decisions about whether to acquire the financial product. The information contained on this website does not constitute the provision of advice or constitute or form part of any offer, solicitation or invitation to subscribe for or purchase any securities or other financial product nor shall it form part of it or form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any securities or prices used in the examples on this website are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not a reliable indicator of future performance. This website may contain material provided directly by third parties. This information is given in good faith and has been derived from sources believed to be accurate at its issue date. While such material is published with necessary permission, no company in the Westpac Group nor any of their related entities, employees or directors (together, “Westpac”), nor the Participant, accepts responsibility for the accuracy or completeness of, or endorses any such material. This website may also contain links to external websites. Westpac and the Participant do not accept responsibility for, or endorse the content of, such external websites. Except where contrary to law, Westpac and the Participant intend by this notice to exclude liability for material provided directly by third parties and the content of external websites.