Vct

Mark2016

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?

enator

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

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!

mostwelcome

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/