For this to happen, Fundy creates a company-specific syndicate for shareholders to join. In order to list their shares, a shareholder needs to complete the following steps:
1. Sign up to the Fundy platform
The shareholder signs up for a free Fundy account at Fundy.com/signup.
2. Become a verified Fundy user
Shareholders are required to submit proof of identification so that Fundy can conduct appropriate KYC/AML checks. Read more about signing up and verification.
3. Join the company syndicate
Shareholders will receive a link from the company asking them to join the company’s syndicate. They can then indicate how many shares they wish to transfer to the Fundy platform for trading.
4. Transfer of shares
Once shareholders have asked to join the company syndicate by making an indication, the company is given the opportunity for a final review of the shareholders who wish to participate, and then confirms that the transfer process may proceed.
Each shareholder receives a notice asking them to confirm they wish to proceed with the transfer and listing. This will include accepting the terms of the holding agreement, and creates the legally binding agreement whereby the shares are transferred onto the Fundy platform. The shares are held on trust by a Fundy nominee company, and the investor remains the beneficial owner at all times.
All of the assets held by Fundy on behalf of its clients (whether money or assets) are held in separate client accounts, typically with third party banks. Fundy is authorised to hold client money and assets, and its processes for doing so are audited annually. Fundy regularly reviews the status of the banks with which it works to ensure the highest standards of protection for client assets. Investors are not exposed to any Fundy credit risk at any time.
5. Completion and Trading
The company signs an Admission Agreement which admits the company to the Marketplace and also confirms the company’s adherence to the Marketplace Rules.
With the listing process complete, each investor’s shares are displayed on their portfolio page on the Fundy platform. At this point, trading can be opened and investors are free to list their shares for sale, or buy more. Read more about how to trade.
When trading opens for the first time, an opening valuation will be discussed between Fundy and the company, typically based on the company’s most recent funding round valuation. This valuation serves as the central point in the price corridor (see more below), which sets limits on the price at which shares can be made available for sale. It is not a price at which investors are necessarily expected to trade. As the first trades complete, the Fundy trading engine tracks the volume weighted average price (VWAP) and this becomes the ongoing basis for the price corridor. Trading prices are set only by market participants, and not by Fundy or the company itself.