Are you interested in purchasing shares in Republic? You can now do so on its Secondary Marketplace, hosted on Republic Europe.
Republic purchased UK-based Seedrs several years ago. Seedrs was one of the most established securities crowdfunding platforms in the UK. Seedrs had also extended its services to continental Europe – a move that has been enhanced due to EU rules allowing for firms to raise money online across all member states. The Republic has also cross-listed securities in both the US and the UK/EU, a strategy it plans to boost in the coming year.
Before being purchased by Republic, Seedrs had established one of the most effective secondary marketplaces for private securities in Europe.
By creating an effective structure to manage offerings and limiting trading windows, Seedrs has created a viable path for trading crowdfunded securities. This allows liquidity for investors who desire an exit outside an IPO or M&A event. It also creates an opportunity for investors to purchase shares in private firms they believe can generate solid returns. Republic is now listing its own shares on the Secondary Market at an indicative valuation of £1.024 billion (about $1.28 billion).
Information is limited on the offering page unless you are registered with Republic Europe. However, available information indicates there is around £261,000 in shares available from investors interested in selling their positions. Uniquely, shareholdings were imported onto the Secondary Marketplace outside of a funding round.
Republic plans to extend the Seedrs created Secondary Marketplace to the US by adding blockchain tech and digital asset functionality. The “tokenization” of shares can streamline trading and transfers of securities while automating certain processes. Digital securities can also encourage certain types of activities by shareholders without extensive cost increases.
As the EU and the UK are pursuing bespoke rules for digital assets, Republic may be well-positioned to take advantage of the updated regulations. The fact that the incoming Trump Administration is poised to enable digital asset innovation (unlike the Biden Administration), Republic executives are very bullish about the future of online capital formation and massive improvements in the private securities markets.
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