Purchasing Shares Ahead of IPO: HIN Question

OzCheapo on 02/09/2020 - 11:53

Hi all,

I'm looking to purchase shares of Ratesetter now Plenti and the investor section is asking for the HIN from my Broker Sponsored account. I haven't traded shares before and was wondering whether it was better to set one up or to get the New Issue Sponsored account…

From what I read, by going with the Issue Sponsored subregister, it means that I have less flexibility in trading those shares until I move it to a future brokerage account?

Please correct me if I'm wrong/send me to a good website - I've spent a good hour trying to understand this from the NAB/Commsec site and could use a fellow Ozbargainer's thoughts.

Financial

Comments

  • blighst on 02/09/2020 - 12:16
    +1

    I'd set up an online account with a CHESS sponsored broker so you get your HIN (cheapest is Selfwealth/Thinkmarkets, best platform Commsec imo although tbh if you're only going to be holding these shares then using the one attached to your bank if applicable will do). It's free to move shares across brokers so don't stress about it, and most don't have maintenance fees.

    You'll get a HIN with CHESS when you set up an account, and just supply that and the shares will appear in your brokerage. Because they're CHESS sponsored, they're in your name. Issuer sponsored shares are a pain to sell, you're correct - you'll end up converting them to CHESS sponsored later anyways probably to sell.

  • Seraphin7 on 02/09/2020 - 12:20
    +1

    Set up an account with the online broker of your choice and you'll get the HIN.

    Use that to purchase your shares and once they're issued you can trade through that brokerage account.

  • OzCheapo on 02/09/2020 - 13:43

    Thanks for this, I'm excited about the next stage of having a small amount to invest and appreciate the advice.. always undertain about a new adventure

    • ty99234 on 02/09/2020 - 21:23

      Just wondering where you got the application form. I registered my interest once I receive the notification email, but haven't got the application form.

  • [Deactivated] on 02/09/2020 - 20:00

    Your research is correct!

    Broker sponsored = stock broker, they will setup a HIN for you when you open an account. Your shares will be held at your stock broker on your HIN. You can trade your shares using your stock brokers platform / app commsec etc live within day.

    Issuer sponsored means your holding exists at the share registry of the company you are investing in. To sell your shares you will need to login to administer your holding and you may not have as much control over execution, fees are usually higher as well. You can get your broker to transfer issuer sponsored shares to a broker sponsored HIN for a fee.

    Definitely go with a broker

  • Tomato on 02/09/2020 - 23:36

    don't forget to use the referral on ozbargain!

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