The London Stock Exchange (LSE) has partnered with Fintech PrimaryBid, an internet-based investment platform, in order to give retail investors the opportunity to access to share offerings currently unavailable. PrimaryBid’s solution is said to digitally connect retail investors to quoted company offerings at the same terms as institutions – an important qualification.
According to the terms of the deal, which were revealed on November 21, the LSE and PrimaryBid pair will introduce online infrastructure that will allow firms that are either listed or listing on LSE to give individual investors the chance to participate in initial public offerings (IPOs), retail bonds and various other types of equity offerings.
LSE’s head of equity primary markets, Charlie Walker, stated:
“This agreement is part of our ongoing commitment to broaden the services available to retail investors. Individual investors and issuers will benefit from the additional capital and liquidity available through Primarybid’s platform, helping to make markets more accessible for all.”
The UK-headquartered Fintech firm PrimaryBid will give individual investors access to various real-time share deals on the LSE. Firms that are issuing shares will reportedly have access to a centralized retail gateway through the LSE.
“Individual investors and issuers will benefit from the additional capital and liquidity available through Primarybid’s platform, helping to make markets more accessible for all.”
PrimaryBid’s internet-based platform gives individual investors exclusive access to new share issues.
PrimaryBid CEO Anand Sambasivan mentioned that his company was “excited to be working with London Stock Exchange in laying down the digital infrastructure that gives everyday investors equal access to capital markets transactions on the same discounts as the institutions.”
Sambasivan also said that the deal with the LSE would be beneficial for issuers and individual investors.
“Issuers on the LSE can now access a broader pool of investors to augment capital formation and long-term trading liquidity. This is applicable to companies listed on AIM all the way to the FTSE 100. Having this gateway available during transactions unlocks historical inefficiencies and brings tangible benefits to the ecosystem as a whole. London Stock Exchange’s deep knowledge and trusted relationships with the capital markets ecosystem makes them the ideal partner to help achieve this vision.”
In early September 2019, PrimaryBid finalized a £7 million investment round, which was led by Pentech and Outward VC. The company said it will use the capital raised to expand its sales and marketing efforts, and further enhance its IT product development.
Following the multi-million dollar investment round, Sambasivan remarked:
“We are on a mission to democratise public equity offerings. Everyday investors are a vital part of the stock market and yet unable to buy discounted share deals – a longstanding imbalance in the public markets. This is true whether it is a government selling down its holding in a large company or a quoted company is raising growth capital. Our online platform addresses this challenge, giving small investors the same access as traditionally afforded to large institutional investors.”
PrimaryBid’s management announced on November 19 that it had won the “Crowdfunding Platform of the Year” award (from AltFi Awards, which has been “a barometer of success among Europe’s leading alternative finance and Fintech businesses” for over five years).
Thank you all for your votes and support. We won the Crowdfunding Platform Of The Year 🏆😍 we appreciate it a lot. Huge thank you to the judges! https://t.co/sRfMCY1zdz #investors #AltFiAwards #fintech pic.twitter.com/2RcTTNuyq1
— PrimaryBid (@PrimaryBid) November 19, 2019