UK 17:13 Monday, 26 October 2026
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
In olden days Kea Petroleum (KEA) would have raised money at big discounts through bucket shops who would have taken a big commission as would have greedy brokers. But the revolution has started as it becomes the first company to use Primary Bid so cutting out the crony capitalists, saving it money and not stiffing PIs with a pump and dump operation. Well done Kea.
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Comments
DUCK AND DIVE
Good luck to all concerned. The SP of KEA has been around 0.8p for the past two months so this placing aspires to sell £3m worth of shares at 1p or greater, ie a 25% premium. Of course, it doesn’t look like a premium today because the SP has risen optimistically by 25% in the hope that 1p is the new floor — which of course it isn’t…although it might be if they can find enough retail punters to subscribe at 1p after presumably electing not to buy in at 0.8p.
No doubt the rampers will be hard at work over the next couple of weeks bigging up the well that might never be drilled in the hope that the Primary.Bid offer gets away. Chickens and eggs here but I wait to be convinced that there will be enough retail placees out there willing to take this leap of faith.
On the other hand, a successful retail placing at this kind of premium would open the floodgates – and close the trough to flippers, at least for junior oilers who can dangle a big carrot such as KEA’s proposed well drill. Without the big carrot, this type of placing would have to be at a significant discount to the prevailing SP – and this would then introduce the prospect of retail flippers.
Watching with interest.
Jason
I like the idea of Primarybid & have registered but it’s a shame that first of the block is a very optimistic first placing by KEA at a premium. I could have understood the attraction of participating at a small discount to say 30day average on a decent stock but to pay over the odds for a pile of #### doesn’t appeal!
Mick Hoxofter
it’s a great idea but, sadly, the broker partners are only using it for the stuff their institutional clients don’t want and presumably Darwin Strategic will have had a look too. So small investors will still be shafted. In fact I’d say if you can buy anything on here, don’t.