Everything you need to know about our Club
OnMarket established the Capital Club to reward loyal and/or accredited members with access to selected ‘private’ investments. These include placements issued by listed or unlisted companies and seed rounds undertaken by exciting young companies.
Capital Club members also get early notification of deals and access to equity crowd funding (ECF) private deal rooms. Accredited members can also invest more than $10,000 into ECF offers.
ASX recently announced temporary emergency capital raising relief for companies, allowing them to raise up to 25% of new capital through placements (previously 15%). During the GFC, ASX 200 companies raised $44.8 billion from 140 placements at an average discount of 12.29%.
We expect to see significant capital raised over the next few months at deep discounts as boards scramble to cope with the fallout from COVID-19. Whilst there is a history of companies limiting allocation of their placements to large institutions, we will do our best to get access to these offers. What we don’t do, is offer deals where OnMarket has little or no chance of securing an allocation. Members know that if a placement is offered to them, then OnMarket has been assured of an allocation.
Note: legislative constraints mean that placements undertaken by listed companies can only be bought by investors qualified under s708. Institutional investors can buy securities issued under a placement at a discount, but retail investors must wait until they are traded in the secondary market the next day – often at a premium. OnMarket has lobbied regulators for nearly 10 years to rectify this anomaly, but in the meantime we aim to provide as much access and opportunity to our investors as possible.
The Capital Club is also a great platform for us to provide access to exciting, early stage companies that aren’t suitable for an equity crowd funding raise, either due to the sophistication of the business model, capital raising instrument or technology behind the business. We often come across companies like this and now have a dedicated venue to appropriately connect these companies with the right capital.