HotCopper shakes up the IPO market

Online stock market discussion forum, HotCopper, will put forward initial public offers through its website and return 50 per cent of all broker commissions to subscribers in a move that is set to shake up the traditional IPO market.

The announcement is below:

Key points:
- HotCopper has recently been granted an AFSL, allowing the company to offer IPO's via its website,
- Subscribers to HotCopper promoted IPO's will be refunded 50% of the broker commission paid to HotCopper as part of the IPO,
- HotCopper has over 110,000 active members and is recognised as Australia's largest independent stock market discussion forum.

Australia's leading stock market discussion forum, HotCopper, plans to revolutionise Initial Public Offerings (IPO's) for ASX bound companies, not only offering the ability to subscribe to IPO's via its website, but also confirming it will split its broker commission with subscribers for shares.

In a move likely to unsettle the traditional IPO market in Australia, HotCopper has confirmed it will return 50% of all broker commissions received to subscribers - an offer never before made in Australia. Traditionally brokers have received a fee of between 4-7% for all monies raised in IPO's.

"This is not a gimmick, or a short-term offer, we feel that if we generate fee's from companies for assisting them with IPO raisings, then we should split them evenly with the people actually putting the money in," said HotCopper Managing Director, Mr Greg D'Arcy.

"We pay what most brokers keep for themselves," Mr D'Arcy added.

HotCopper is able to offer IPO's via its website under the terms of its recently granted Australian Financial Services Licence (AFSL). Each company undertaking an IPO will be contacted to ensure HotCopper is able to secure a suitable allocation, which will then be promoted to its extensive membership base of retail, sophisticated and high net worth investors.

"Companies will be offered the opportunity to promote their IPO's to one of Australia's largest networks of quality investors, which we think will assist them in completing their IPO's in a suitable time," Mr D'Arcy added.

Despite only launching in the past few days HotCopper has already secured an allocation in the following IPO's: Matrix Gold Limited, Scandinavian Resources Limited, AACL Holdings Limited and Greater Asia Investments Limited.

This new and exciting offer will allow investors without a broking relationship to access a broad range of new IPO's coming to the market.

HotCopper is Australia's largest independent stock market discussion forum with over 110,000 active members, a total of 6.2 million posts and 23 million page views per month. It is a free forum for enthusiastic investors to discover new perspectives on topics including: Listed Companies and IPOs; Futures, Derivatives, Managed Funds and Foreign Currency Trading; Stock Markets (Local and Foreign); Politics, etc.