London Stock Exchange Group's investment builds on collaboration with PrimaryBid to support innovation in capital markets
LSEG will hold 9% stake in PrimaryBid following investment and will hold a seat on the Board
Reaffirms LSEG's long-standing commitment to broadening retail investor access to public equity markets
London Stock Exchange Group (LSEG) announces today that it has made a minority investment in PrimaryBid, a technology platform which connects retail investors with listed companies raising capital. The investment was made as part of PrimaryBid's $50m Series B funding round announced today and builds upon London Stock Exchange's existing collaboration with PrimaryBid. As a result of the investment LSEG will hold a circa 9%* stake in PrimaryBid and Charlie Walker will join the Board as a non-Executive Director. PrimaryBid's platform has enabled retail investors to participate in over 41 capital raisings by companies and investment funds on London Stock Exchange's Main Market and AIM so far this year.
PrimaryBid's innovative platform connects retail investors with public companies raising capital on the same terms as institutional investors. Retail investors directly own 13.5% of the UK equity market, representing approximately £420 billion in holdings. The investment, and ongoing collaboration, is part of LSEG's commitment to broadening access to capital markets for retail investors and supporting companies through providing access to long-term equity capital.
Charlie Walker, Head of Equity and Fixed Income, Primary Markets, London Stock Exchange plc, said:
'This investment builds on our collaboration with PrimaryBid and is part of London Stock Exchange Group's commitment to broadening retail investor access to public equity markets. Through PrimaryBid's innovative offering, retail investors have been able to access capital raisings on the same terms as institutional investors, supporting the UK's public companies by providing additional capital and liquidity. PrimaryBid has become an important part of the UK's capital raising ecosystem and we look forward to working with them to further enhance retail investor access to capital markets within the UK and globally.'
Anand Sambasivan, CEO of PrimaryBid, said:
'The COVID-19 pandemic demonstrated the effectiveness of the public markets, with companies recapitalising quickly and efficiently. Our technology has allowed thousands of retail investors to participate on equal terms with institutional investors, unlocking a large and important source of liquidity and long-term share ownership for corporate issuers. The response from Boards and their advisers to our solution has been excellent: they recognise our digital solution brings together both good governance and best execution.'
For further information:
Sarah Bailey / Christopher Loscher
+44 (0)20 7797 1222
Notes to editors:
*The circa 9% holding is calculated on a fully diluted basis. On an undiluted basis the holding will be circa 13% and as such the investment is subject to regulatory approval.
London Stock Exchange Group plc published this content on 26 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2020 09:34:06 UTC