Secondary Analysis

It’s just after 9pm on Seedrs’ first ‘Trading Tuesday’ – The 7-day secondary market is open for business. Those wishing to sell had until a few days ago to make their intentions known so their listings would appear first thing this morning, sellers who missed the boat will have to wait until July.

Seedrs members received an email from Thomas Davies boasting of 111 live buying opportunities – let’s take a look what’s happened since launch.

Of the 111 lots listed, 49 (>44%) are currently marked ‘Under Offer’, however lots can only be bought in the blocks in which they are offered by the seller and they range in value from £10 to £1,000 so the number of blocks sold tells us nothing.

Based on Seedrs’ idea of market prices, the 111 lots are offered at a total of more than £39,000 (Euro denominated offerings have been converted to GBP @ 0.87), the sum of those that are currently ‘under offer’ totals just over £9,000 (just over 22%), not quite so impressive.

Looking at the companies on offer we can glean a few things some of us probably already know. Glentham Capital takes the prize for most shares on offer (£3,804 worth), they also win the prize for fewest shares under offer (zero). They are followed closely by Torch with £3,600 on offer and again zero under offer. There are plenty more with zero take-up, but none as bad as these – the next in line would be UnderTheDoormat with £1,483 on offer.

At the other end of the scale Adludio F.KA Future Ad Labs (snappy name) have 100% take-up on the £1,695 of shares offered, the same goes for Swogo (£1,486) (as predicted), Wonderush (£993), Veeqo (£766), No Agent (£522), Hummos Bros (£493), Frenzi (£492), Pap (£492), Gearbox Records (£200) and YellowDog (£177).

When looking at these numbers its worth keeping in mind that the degree of take-up is unlikely to be driven by price alone – the number of shares on offer in each lot and consequentially the total lot value is likely to have a significant impact with smaller lots more likely to sell than large (average value of those under offer is just over £184 vs £493 for those that remain on the table). So those companies with zero take-up mentioned above may just represent one big block – I can tell you that this isn’t the case, in fact Glentham Capital rules the roost in terms of number of separate lots on offer with seven, torch again takes a close second with six lots available.

Once you’ve digested all of that, don’t forget Seedrs are set to recognise over £600 in revenue and have lined themselves up for multiple bites of the cherry by keeping everything within their platform. It’ll be interesting to see what the next six days bring and if anyone is brave enough for those Glentham Capital shares on the table.