Retail investors were on Monday able to begin subscribing to finnCap’s upcoming flotation on the same terms as institutional investors through PrimaryBid’s investment platform.
Last week the broker announced that it had agreed to buy advisory firm Cavendish Corporate Finance for £14mln and planned to float the combined business on the London Stock Exchange’s junior market AIM.
FinnCap expects to float the combined group in early December, raising £6mln and giving it a market value of £46mln.
Retail investors have traditionally been unable to directly buy shares ahead of an initial public offering (IPO) or other fundraisings.
PrimaryBid said its platform allows retail investors to take part in equity offerings on the same terms as institutional investors. It has helped raise £64mln for companies from 41 deals to date.
Sam Smith, founder and chief executive of finnCap: “We believe very strongly in retail share ownership and indeed finnCap Limited is currently 95% owned by its employees. When we announced our intention to acquire Cavendish Corporate Finance and to list on AIM, an important priority for us was ensuring that retail investors were able to invest in the IPO on the same terms as institutional investors. We are pleased to be working with PrimaryBid, whose mission to democratise access to public equity markets we fully support.”
Anand Sambasivan, co-founder and chief executive of PrimaryBid, said: Our mission is to enable European retail investors to seamlessly access pan-European public equity offerings. Whether a publicly listed company is issuing new or follow-on equity or Governments are selling down holdings, we believe retail investors deserve the same access and investment terms as institutional investors.”