How illiquid are Monzo shares?


#1

I understand that they can’t be easily bought and sold. But how exactly would i do it if i wanted to sell the shares in going to buy?

And how likely is it that they would actually sell?


#2

You would have to wait until Monzo decide to go to an IPO to sell your shares, which may be never. Another option for Monzo would be acquisition. They would sell assuming either of these happened.

Assuming Monzo goes bust, you will lose all your money invested. If they do well your share price will rise and when they either sell or decide to go down the IPO route you would get some good money back (possibly).

As for what you do, that’s your decision. Just know your shares are worth $0 to anyone as currency wise as they’re unable to buy shares until there’s an IPO or until Monzo sell.


#3

That’s really interesting, thanks for the info.

But let’s say i needed the money and there was no prospect of an IPO or takeover - is the secondary market on these forums actually viable? Like could i sell if i really needed to?


#4

If you have to consider this then investing is probably not for you, as your money is typically locked up for quite a few years before you can pick any fruit I’m afraid.

As for the question of a secondary market, I don’t believe so. You’d just have to pretend the money didn’t exist.


#5

Some people have sold their shares to others, usually by making contact through the community (just check out the various “selling shares” posts).

However it is a very manual process and you both have to negotiate a share price you are happy with.


#6

In short very illiquid. This is not a short term investment and it will be difficult to get your money out unless they go public. However if you can stick some money away for a few years you could make a fair bit. But you could also lose everything :wink:


( related to Monzo CEO, Investor in Monzo ) #7

At the moment you can only sell these shares through Crowdcube who deal with the share certificate transfer registrations, you have to find your own buyer and negotiate a mutually agreed price , I think you have to get approval from Monzo to sell them , and you can’t split your shareholding ie you have to sell the whole block(s) you purchased - you wouldn’t be able to split a purchased block - presumably because of the share certificate transfer cost.

I think this is a free service offered by crowdcube.

The likelihood of selling would be dependant on the price you wanted for them , and the uptake of this current crowdfunding round.

I don’t see the possibility of purchasing in this round and then a week later selling at a large profit if that is your intention.

The answer - at the moment the shares are very illiquid , they are not like a publicly traded share from a PLC


(Steve Daniels) #8

*Free for now from Crowdcube…

They are getting a bit ‘chargey’.


(Dan) #9

They are very illiquid. You need to expect to hold for years.

On the flip side, what always comforts me is knowing that institutional investors have invested £150m+ also knowing this. And they’re going to want a return. They have the ability to ask more questions than we do - due to the sheer value of their investments, and they were happy investing. The lineup of institutional investors is no joke either, Monzo have got some really big fish on board.

So all in all, it will potentially be a while. But if you can hold on a few years without seeing that money, I think it’s quite likely it’ll pay off! :smiley:


(Excited about Christmas) #10

I have been offering mine for £50 each for months now. No takers at all! :yum:


(Andrew Clark) #11

Crowdcube have previously stated that they were looking to set up a secondary market which would make your shares slightly more liquid.

Companies rarely (but it is possible) allow shareholders to sell some of their stock at the time of the next raise. This is sometimes offered to employees (who may be sitting on a paper fortune) and sometimes to wider shareholders. For example, Brewdog let me realise a small amount of money in the past year when there was a large cash injection.

Staff and management at Monzo will also be keen to make their stock liquid in the future so we’re all in it together.


#12

Did you see their alpha about a year ago?

It was literally one page saying “rarther wants to sell 100 Revolut shares. Click here to make an offer” You click and enter your offer on a form and then never hear anything back!

Truly woeful attempt. I cannot imagine them completing that feature to standard within the next 10 years, and from what I’ve read they’ve shelved it altogether.

Oh yeah and Monzo was not even an option to trade on there because of the restrictive clauses in their articles. It was a drop down menu listing only a few eligible companies.


(Dan) #13

That implementation was truly painful to see. It was like an intern built it in an afternoon.


(Gareth) #14

Why do lemmings come to mind…