when does sell side initiate coverage?

I'm building a short thesis for a recent UK IPO, but I think stock may pop temporarily on sell side initiation - for timing considerations when I write the pitch, is there any way to find out when sell side may release initiation reports? are these report releases ever scheduled/can I call the banks that are likely to cover it and ask? 

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Comments (7)

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May 12, 2021 - 9:52am

You can call, but they wouldn't tell you anything. Sell side not allowed to talk about the report until they publish the report. 

I dunno what UK securities rules are. In US, banks that were on the IPO are mandated to cover the company and there is a 25 day "quiet period" after the stock starts trading on the exchange and the banks can publish their initiations (they almost always publish on the same day when the quiet period is over). For the banks not on the deal, they can initiate whenever they want. 

Instagram: @dickthesellsider | Substack: dicktoad.substack.com

  • 2
May 12, 2021 - 1:39pm

The new UK IPO rules that came in a year or so ago now allow 'bona fide independent research analysts' to get access to the same analyst presentations that syndicate analysts do, so you are starting to see independent brokers (not the banks, think houses like Autonomous) publish ahead of IPO pricing and then initiate coverage with a recommendation on day 1 of trading. Blackout period for syndicate banks in the UK is generally 40 days - not a legal requirement but that's industry standard iirc. 

E.g. if we're talking recent UK IPOs there are already several short / sell reccos on Deliveroo and Darktrace.

May 12, 2021 - 2:31pm

Ah, I am getting educated

Instagram: @dickthesellsider | Substack: dicktoad.substack.com

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