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  • FIRST POST
    • Mark2016
    • By Mark2016 12th Oct 17, 12:38 PM
    • 38Posts
    • 4Thanks
    Mark2016
    Vct
    • #1
    • 12th Oct 17, 12:38 PM
    Vct 12th Oct 17 at 12:38 PM
    Hi everyone

    I recently bought some VCT shares. Could someone help me understand the scenario where a company which is held in a VCT becomes listed on the stockmarket and one subsequently profits? Is this a possible scenario or does one simply profit from the VCT's share price, dividend and of course the tax incentives?
Page 1
    • enator
    • By enator 12th Oct 17, 1:09 PM
    • 92 Posts
    • 103 Thanks
    enator
    • #2
    • 12th Oct 17, 1:09 PM
    • #2
    • 12th Oct 17, 1:09 PM
    Some VCTs retain the profits to re-invest in new opportunities (whilst keeping to their stated dividend policy), others will pay out a special dividend.

    Keep a regular eye on their websites, the info is posted there.
    • steampowered
    • By steampowered 12th Oct 17, 3:58 PM
    • 1,949 Posts
    • 1,823 Thanks
    steampowered
    • #3
    • 12th Oct 17, 3:58 PM
    • #3
    • 12th Oct 17, 3:58 PM
    The fact that a VCT portfolio company has undergone an IPO does not by itself impact the VCT.

    The VCT would still be a shareholder - it is simply that the company would be public rather than private.

    In reality, an IPO would be a good opportunity for the VCT to exit. The VCT would probably choose to sell its shares at some point and that money would go back into the VCT fund.

    If a company does reach the IPO stage it probably means the VCT will have done extremely well from the investment!
    • marktristan
    • By marktristan 12th Oct 17, 7:11 PM
    • 13 Posts
    • 5 Thanks
    marktristan
    • #4
    • 12th Oct 17, 7:11 PM
    • #4
    • 12th Oct 17, 7:11 PM
    A good example is Eve Sleep. Held in Octoups Titan VCT. Went public in May, VCT has kept hold of the shares, it's now a much larger % of the portfolio

    https://www.wealthclub.co.uk/articles/investment-news/eve-sleep-ipo-investment-story/
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