Our campaign to ensure retail investors the opportunity to buy shares of companies before they go public in the UK is gaining momentum
Our campaign to ensure retail investors the opportunity to buy shares of companies before they go public in the UK is gaining momentum.
In recent days, the powerful Association of Investment Companies and investment house Edison Group have supported the campaign.
They agree that when companies list their shares on the London Stock Exchange through an initial public offering (IPO), it should not be just large investment firms that are allowed to participate.
Helping the little ones: In recent days, the powerful Association of Investment Companies and the investment house Edison Group have supported the campaign
Retail investors should also be given the opportunity to participate early on – rather than having to wait for stocks to start trading.
An analysis conducted on behalf of The Mail on Sunday by technology platform PrimaryBid shows that retail investors often lose out because of their exclusion from IPOs.
Of the 15 largest IPOs this year where retail investors were shunned, 11 resulted in stock prices opening above the listing price. This meant that investors wanted to buy over-the-counter paid stocks.
Richard Stone, new head of AIC, said that “private investors are a vital source of capital and liquidity for the UK stock market” and should have “better access” to IPOs.
Fraser Thorne, CEO of Edison, says our campaign is “vitally important.”
He adds: “Retail investors tend to focus on financing innovative growth companies that will play a fundamental role in driving a sustainable recovery. We need all the capital reserves at our disposal to get the economy back on track. ‘