New issues

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9. Making your application

It is simply staggering how many applicants for new issues have their money returned because they have failed to follow the instructions about how to apply. Always do exactly as you are told on the prospectus. Many new issues are heavily oversubscribed, and the sponsors will take the slightest excuse to reject your application if you give them the chance.

In particular, take account of the following points:

• Apply only for the round numbers of shares specified, not for larger amounts, or figures other than those listed
• Do not omit to fill in any personal details you are asked for, unless you value your privacy above your profits!
• If you are supposed to write your address or any other details on the back of your cheque, make sure you do so
• Never postdate your cheque - it will be cashed as soon as it is received, not at the time of the flotation
• Do not risk missing the deadline, which is sometimes set only two or three days after the publication of the prospectus. If necessary, deliver your application by hand to the address mentioned on the form.

Lastly, never be tempted to make multiple applications. They are illegal. They are also easily picked up by software designed to scan applicant databases. Several individuals, including some City high-flyers, have been successfully prosecuted for trying to get more than their fair share of new issues.

1. After Sid - a short history of the new issues market 2. Do new issues offer good value? 3. Types of new issue 4. Applying via brokers and intermediaries 5. The prospectus 6. What to look for in the prospectus (1) - directors and advisers 7. What to look for in the prospectus (2) - standard company analysis 8. What to look for in the prospectus (3) - blue-sky company analysis 9. Making your application 10. Stagging 11. A word on warrants 12. A tale of two issues 13. Conclusion

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