Investors offered IPO 'on same terms as institutions' via Teathers mobile app

20th Oct 2015 11:32

(ShareCast News) - Investors will for the first time be able to subscribe to an initial public offering on the London Stock Exchange via a mobile phone app, which has been developed by Teathers Financial.Teathers, working with regulated broker Shard Capital Partners, will offer investors the chance to invest in the flotation of Leni Gas Cuba at the same price and on the same deal terms as institutional investors."This represents the first IPO, worldwide, to be offered through a mobile application," AIM-listed Teathers' executive chairman Jason Drummond said."We believe that this will be the first of many transactions available through the Teathers App, that have been sourced by Shard Capital and we are hopeful that as TFSL begins to roll out its white label strategy, private investors will have access to further deal flow from an array of brokers across the City."The Leni Gas Cuba IPO is provided on an execution-only basis by Shard Capital, who provide the on-boarding services, the regulatory compliance features and the custodial support framework as part of a short exclusivity agreement between the firms.Earlier this month Teathers invested £100,000 in Leni Gas Cuba, a new vehicle for entrepreneurial AIM financier David Lenigas, in line with its strategy of taking stakes in quoted companies either on flotation, through secondary offerings or by purchasing shares in unlisted companies it believes will be seeking a quotation within 12 to 18 months of such investment.Teathers' Crowd Equity Service and Mobile App has been free to download from Apple's iTunes and Google Play since July.The company has undertaken a massive transformation in 2015, selling its long-standing CA Sperati buttons and clothing business and making a quickly aborted move to become an oil and gas investment company.Under a maiden agreement signed in September, Shard has a licence to use the Teathers app software for an initial 12-month period in return for an exclusivity agreement whereby TFSL will not sign any further licensing agreements for 120 calendar days.In return, Shard Capital has agreed to pay a licence fee as well as a monthly royalty fee based on a percentage total of any gross revenues made by Shard Capital from the app's use.Shares in Teathers, after a sharp initial spike to 4.8p, were up 4.4% at 4.18p just before midday on Tuesday.