London Stock Exchange and PrimaryBid sign commercial agreement to broaden access to equity offerings
PrimaryBid, an online investment platform connecting publicly listed companies with individual investors for share offerings, has formed a new strategic commercial venture with London Stock Exchange.
Together, they will roll out the digital infrastructure that enables companies listed or listing on London Stock Exchange to include retail investors in share offerings on the same terms as institutional investors.
The agreement combines London Stock Exchange’s unparalleled expertise in market infrastructure with PrimaryBid’s leading digital distribution engine.
PrimaryBid will enable retail investors real-time access to share deals active on London Stock Exchange such as: Initial Public Offerings, follow-on equity capital increases and secondary block sales, and ultimately retail bonds. PrimaryBid will be accessible via London Stock Exchange’s Issuer Services Marketplace, complimenting the connectivity with retail investors that the platform facilitates.
Working in collaboration with market intermediaries, the solution will enable investment banks and stockbrokers to service their clients better, create broader revenue channels and help foster a more efficient capital markets framework.
Charlie Walker, Head of Equity Primary Markets, London Stock Exchange, says: “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.”
Anand Sambasivan, CEO of PrimaryBid, says: “We are excited to be working with London Stock Exchange in laying down the digital infrastructure that gives every day investors equal access to capital markets transactions on the same discounts as the institutions.
“This is not only an important development for retail 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.”
PrimaryBid recently closed a GBP7 million funding round to fuel its global expansion plans, led by Pentech and Outward VC with participation from new and existing investors.