London Stock Exchange and PrimaryBid To Democratize Public Equity Offerings
The partnership will level the field between the small investor and institutions on share offerings
The London Stock Exchange (LSE) has tied-up with fintech PrimaryBid to give retail investors access to share offerings. PrimaryBid’s internet-based investment platform will allow retail investors to digitally access share offerings on the same terms (read: discounts) as institutions.
LSE-PrimaryBid: Individual investors on the same footing
The infrastructure created by the LSE-PrimaryBid collaboration can be utilized by LSE-listed (or soon to be listed) companies to allow retail investors to participate in their IPOs, bonds or other equity offerings. Moreover, investors can access these issues in the LSE in real-time through the PrimaryBid platform.
According to the PrimaryBid website, the fintech gives everyday retail investors access to exclusive listed company fundraises at:
- The same time as institutions
- On the same discounted terms as institutions
- With no commission
However, PrimayBid does receive a percentage cut from the fundraising entities.
Win-win for both issuers and investors
Primarybid CEO Anand Sambasivan said issuing companies would now be able to access a much bigger pool of investors.
“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,” said Sambasivan. “Having this gateway available during transactions unlocks historical inefficiencies and brings tangible benefits to the ecosystem as a whole.”
PrimayBid was recently declared 2019 Crowdfunding Platform of the Year.
[Related Story: LSE snaps up Refinitiv for $27 billion ]
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