Key Highlights
- The Smarter Web Company is considering an IPO of new preferred shares on the London Stock Exchange.
- The proposed offering could raise between £15 million and £25 million, with £10 million required to proceed.
- The preferred shares would carry a cumulative variable-rate weekly dividend but no voting rights.
The Smarter Web Company PLC is considering an initial public offering of a new class of preferred shares on the London Stock Exchange.
According to an announcement published September 11, the proposed securities would trade under the reserved ticker MORE and would carry a cumulative variable-rate dividend paid weekly. The company has not yet set a date for the potential IPO.
The proposal still requires shareholder approval, regulatory clearance and other admission conditions before the shares could begin trading.
Proposed offering could raise up to £25 Million
The company is targeting gross proceeds of between £15 million and £25 million, with at least £10 million required for the proposed IPO to proceed.
The proposed admission would also require at least three market makers and a minimum of 50% of the securities to remain in public hands.
The company said the offering could be available to eligible UK retail and institutional investors through participating brokers, wealth managers and investment platforms.
The IPO will proceed only if the required conditions are met.
Preferred shares would differ from ordinary stock
The proposed securities would have different rights from Smarter Web’s existing ordinary shares.
The preferred shares would carry a cumulative variable-rate weekly preferential dividend, together with a liquidation preference and a company redemption right.
They would not carry voting rights at general shareholder meetings.
Smarter Web has identified operating cash flow, existing cash reserves, Bitcoin holdings and future access to capital markets as potential sources for meeting the dividend obligations. These are proposed funding sources and do not guarantee that dividends will be paid.
Shareholders to vote on September 28
The next step is a shareholder vote scheduled for September 28.
The resolutions would amend the company’s articles of association and give the board authority to issue the proposed preferred shares.
Even if shareholders approve the proposal, the securities would still require the necessary regulatory and market-admission steps before trading could begin.
Proceeds could support acquisitions and working capital
Smarter Web said the funds raised could be used for acquisitions, working capital and other corporate purposes.
The company operates digital services businesses covering web design, development and digital marketing and says it serves more than 500 clients.
Bitcoin is another component of its balance sheet. In April, Smarter Web announced the purchase of an additional 11 BTC, taking its reported holdings to 2,706 BTC.
The company has not indicated that proceeds from the proposed preferred-share offering would be used specifically to purchase additional Bitcoin.
Additional funding facility proposed
Smarter Web is also proposing an At The Market (ATM) facility for the preferred shares if they are admitted to trading.
Under the proposed arrangement, Tennyson Capital Partners LLP would sell preferred shares through its broker, allowing the company to raise additional capital over time.
The facility would operate alongside the company’s existing ATM facility for ordinary shares.
Any additional issuance would depend on market conditions and the company’s financing needs.
CEO Says shares could be first of their kind in UK
CEO Andrew Webley discussed the proposed securities in a post on X following the announcement.
“Subject to approval of the Prospectus by the FCA, launch, and all conditions of the Possible IPO being satisfied, we expect the proposed Preferred Shares to be the first of their kind in the UK.”
Webley said the company had been working on the structure for some time and linked the proposal to its broader capital strategy.
The comments describe the company’s expectations rather than a completed regulatory approval.
Proposal remains subject to approval
The preferred-share IPO remains a proposal at this stage.
The September 28 shareholder vote will determine whether the company can proceed with creating the new share class, after which regulatory and admission requirements would still need to be satisfied.
If launched, the preferred shares would give investors exposure to a security with a variable dividend rather than voting rights in the ordinary-share structure.
The proposed financing also comes alongside Smarter Web’s existing Bitcoin treasury strategy, leaving the company exposed to both the performance of its operating businesses and changes in the value of its digital asset holdings.
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