How to Buy Brewdog Shares UK – With No Commission
One of the most highly anticipated IPO’s in the UK stock market is the one of the Scottish craft beer brewer, Brewdog. This company that is, so far, a huge success story is expected to go public soon at a valuation of around £1.41 billion and has made a profit before tax of £1.1 million in 2020.
So, if you are planning to buy Brewdog shares at its Initial Public Offering (IPO) and not sure how to find an online platform that supports this stock, in this guide we’ll cover everything you need to know about the UK-based popular craft beer company. We’ll show you How to Buy Brewdog shares in the UK when the company goes public, analyze the company’s financial performance since its foundation, and explore the key strengths of the company.
How to Buy Brewdog Shares UK – Quick Guide 2021
Step 1: Choose a Stock Broker
As mentioned above, the first thing you need to do in order to buy shares of Brewdog is to find an online platform that enables you to buy shares in the UK. To help you be ready for this event, we are now going to suggest two platforms that are expected to list Brewdog shares once it goes public. Both of these stockbrokers are FCA regulated and enable you to buy shares on a commission-free basis in the form of Contract for Difference (CFDs).
Research Brewdog Shares
Much like many other companies that are going public through an Initial Public Offering, the process of researching and analyzing Brewdog shares is a challenge as there’s not much information about the company. Nonetheless, Brewdog is an interesting firm with a different approach and business model that is very likable these days by consumers and investors (much like Apple, and Tesla). To help you make the best decision, the section below covers the most important information you need to know about Brewdog before you decide to buy its shares.
What is Brewdog?
Brewdog is a Scottish brewery and pub chain that was founded in 2007 by James Watt and Martin Dickie and since then has become a massive international company with more than 100 Brewdog bars in 15 countries. The company even opened a craft beer hotel in 2008 in Columbus, Ohio, US. Further, the founders have recently confirmed the company has 42 new sites in the pipeline.
Brewdog produces various types of lager and pale ale beers, with the flagship beer of the Scottish company is the Punk IPA that is ranked the number one craft beer in the UK.
In 2017, Brewdog sold 22.3% of the company shares to private equity firm TSG for £213 million. And, in 2020, BrewDog was valued at around $2 billion (which is around £1.4) and has reported gross revenue of £214.9 million, an impressive increase from revenue of £171.6 million in the previous year. At the time of writing, Brewdog is the number one craft beer brand in Europe in terms of net revenues.
The company is headquartered in Scotland and employs 708 employees as of June 2021.
Brewdog IPO
In simple terms, an IPO is a process of offering shares of a private company to the public on the open stock market. In recent years, it has become a popular trend in the markets, and often, IPOs generate a lot of interest as investors are looking to seize the opportunity to own shares of new companies. Therefore, IPOs are known as an exciting investment opportunity, partly due to the anticipation and the uncertainty about the company’s valuation in the eyes of the public.
Brewdog was expected to go public on the London Stock Exchange in the previous year, however, the coronavirus pandemic crisis has been an obstacle for the company and it is not yet clear when the IPO might eventually go ahead. So far, Brewdog has managed to raise capital through various crowdfunding and its own ‘Equity for Punks Tomorrow’ program. In that aspect, investors who have bought Brewdog shares on the closed market have high expectations to make a return on their investment when the company will go public.
How to Buy Shares of Brewdog?
Essentially, there are two options for you to buy Brewdog shares. The first is via the direct stock purchase program run by Brewdog known as Equity for Punks. According to Brewdog’s official website, one share costs £25.15 and an investor needs to buy a minimum of 1 share. By using this option, you do get benefits including lifetime discounts in bars, a free beer on your birthday every year, etc. However, this does not seem to be an ideal way to invest in Brewdog company and make a return on your investment.
The second option is to wait for the company’s IPO and find a platform the supports Brewdog stock. As soon as the company’s shares are listed on the UK stock market, you will then be able to buy Brewdog shares from a traditional brokerage firm or an online CFD platform.
Reasons to Buy Brewdog Shares
Clearly, Brewdog is a unique phenomenon that intrigues consumers and investors worldwide, and thus, many analysts believe it is one of the best IPO stocks to buy right now. With that in mind, it is still important to understand the strengths of this company before you make an investment.
Brewdog Has an Eco-Friendly Approach
Brewdog takes pride in being an eco-friendly business, which is something that is becoming very popular due to the rising concerns of global warming and climate change. The company is actively trying to create products that don’t have a negative impact on the earth. As such, they took plastic out of their supply chain and declared that Brewdog is now carbon negative. Also, Brewdog is completely powered by wind technology.
According to Co-founder James Watt: “Brewdog was founded to change the world of beer, putting purpose and the planet before profit. This year has been one like no other, but that’s not stopped us pushing forward with our commitment to doing business for good, and continuing our fight against climate change”.
Global Expansion Plans
When we look ahead, Brewdog has many plans to expand globally. The Scottish company has recently revealed it has 42 new sites on its pipeline and declared its goal to build the world’s leading beer brand. After the company has expanded to Australia in 2019, in February this year, the company also opened the first bar in New Zealand. According to co-founder James Watt, Brewdog “would like to start making beer somewhere in Asia as well”. Some other new locations include Manchester, Edinburgh, London, Columbus, Cleveland, Atlanta, Las Vegas, Shanghai, Mumbai, New Delhi, Berlin, Lyon, Paris, Milan, and Cape Town.
Further, the craft beer company said they have plans to build more breweries in various locations where they already have bars and hotels.
Solid Bussines Model
As opposed to many companies that use leverage by debt in order to raise capital, Brewdog uses another method by rising capital from shareholders. This is done by crowdfunding and venture funding and as such, the craft beer company is somehow considered less risky than other firms.
Apart from that, Brewdog certainly has sort of a new-age business model that is very similar to the business model of companies like Tesla, Google, and Apple. Over the year, the Scottish company raised funds through its Equity for Punks program that enables users to buy shares of the company online directly from its website and get benefits for investing in the company. This is a unique business model that has significantly reduced the risk of Brewdog and enabled it to expand its services.
With that in mind, it is more than likely that if Brewdog wants to continue its growth in order to become the leader in its industry, it must raise funds through an Initial Public Offering in the near future.
Open an Account & Buy Shares
Following this review, you should have enough information to decide whether you want to buy Brewdog shares at the IPO or after. If so, you first need to find a brokerage firm that allows buying the company shares. This can be done directly via the exchange or through a CFD platform that enables you to buy shares without paying trading commissions and by using margin trading. To help you make this investment, in this section of our guide we are going to show you how to open an account and buy shares on this platform.
Step 1: Open a Trading Account
In order to open an account – All you need to do is to visit the broker’s site and sign up by submitting your personal information and then click on the link that was sent to on the activation email.
Step 2: Verify your ID
Choose a regulated by the FCA, which means it must verify the identity of all registered clients before they are allowed to trade with real money. You are, therefore, required to upload both a proof of identity (POI) and proof of address (POA). To complete this step, navigate to the pending verification button on the left side menu and upload a copy of your passport or driver’s license and a copy of a bank statement or utility bill.
Usually, the verification process takes a few days, but meanwhile, you can use a demo account to get familiar with the platform and practice your trading with virtual money.
Step 3: Make a Deposit
Once your identity is approved, you can add funds to your account. In the UK, some brokers maintain a minimum deposit requirement of £140 and investors can use the following payment methods to fund their accounts: credit and debit cards, bank transfer, PayPal, Neteller, and Skrill.
Step 4: Buy Brewdog Shares
Assuming that Bewdog is now a public listed company on LSE, all there’s left for you to do is to search for the Brewdog instrument page on the platform and make a purchase. To do that, simply type in Brewdog at the search bar at the top of the dashboard and then click on the trade button. Then, to complete to purchase, insert the amount you want to invest and click on the ‘Open Trade’ button to get an instant market execution.
Buy Brewdog Shares UK With 0% Commission
Based on Brewdog’s founders’ plans to expand globally and open new sites across the UK, the company is most likely will go public by the end of the year or in early 2021. And, even though IPOs tend to be a tricky business much like in the case of Coinbase shares IPO, sometimes it is better to be ready to buy the stock in the first days of trading.
Looking ahead, Brewdog is certainly one of the most interesting IPOs to watch in the UK market. The company already has fans in the United Kingdom and worldwide and its future outlook is bright.
FAQs
What are Brewdog shares worth?
According to the last Brewdog raise funding, the current price of Brewdog is £25.15 per share.
When is Brewdog IPO?
Right now, it seems that Brewdog is expected to get listed on the London Stock Exchange by the end of 2021, latest early 2022.
Does Brewdog pay dividends?
No, the company states on its website that it does not have any plans to pay dividends in the near future.
What is Brewdog market capitalisation?
According to various sources in the market, Brewdog has a a market capitalisation of around $2 billion (or £1.4 billion).
How to trade Brewdog shares?
The best way to trade Brewdog shares is to wait for the IPO and find a CFD online platform that enables you to trade its shares without paying any trading fees.