Early investors in Freetrade have reportedly lashed out over the stock-trading app’s sale to IG at a fraction of the value it had targeted in previous fundraising talks.
According to Sky News, shareholders had complained over the £160 million deal, which valued shares at 119p each.
Freetrade targeted a valuation of £700 million in 2022 through fundraising talks that failed to materialise, before later takeover discussions with JPMorgan were also abandoned.
“I feel completely robbed by Freetrade and will lose 87% of my investment as a result of this nonsensical deal,” one investor, cited by Sky News, said.
“Crowdfunders like me supported them in their growth journey and now they have dropped us like a stone when they no longer need us.”
Investors were also said to have hit out at costs associated with the being deducted from the proceeds to shareholders.
Freetrade recently unveiled its first profitable interim figures in its six-year history.
“If the business was in trouble I'd understand accepting a low offer,” the investor added, “but Freetrade has grown revenue and turned a profit for the first time”.
“IG got a good deal but it comes at the expense of small investors.”