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London Stock Exchange hires fintech to widen access to IPOs

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LONDON, ENGLAND - AUGUST 29: Financial market figures are shown on big screens and a ticker in the main entrance at London Stock Exchange on August 29, 2019 in London, England. The pound has come under renewed pressure after the government moved to prorogue parliament for five weeks, fueling fears of a no-deal Brexit. (Photo by Chris J Ratcliffe/Getty Images)

The London Stock Exchange (LSE) has signed a deal with online investment platform Primarybid to give retail investors access to share offerings on the same terms as institutional investors.

Under the deal, which was announced today, the pair will unveil digital infrastructure enabling companies that are listed listed or listing on LSE to include individual investors in initial public offerings (IPOs), retail bonds and other equity offerings.

Read more: London’s fintech boom helps drive record year for US investment

“This agreement is part of our ongoing commitment to broaden the services available to retail investors,” said LSE’s head of equity primary markets Charlie Walker.

London-based fintech Primarybid will give retail investors real-time access to share deals on the exchange, while companies issuing shares will be given access to a centralised retail gateway via LSE.

“Individual investors and issuers will benefit from the additional capital and liquidity available through Primarybid’s platform, helping to make markets more accessible for all,” said Walker.

Primarybid’s online platform is designed to connect publicly-listed companies with individual investors, and offers users exclusive access to new share issues.

Chief executive Anand Sambasivan said Primarybid was “excited to be working with London Stock Exchange in laying down the digital infrastructure that gives every day investors equal access to capital markets transactions on the same discounts as the institutions.”

Sambasivan said the deal with LSE would benefit both retail investors and issuers.

“Having this gateway available during transactions unlocks historical inefficiencies and brings tangible benefits to the ecosystem as a whole,” he said.

Read more: Meet the 23 fintech startups on Tech Nation’s latest growth programme

Primarybid, which is regulated by the financial watchdog, recently closed a £7m funding round led by Pentech and Outward VC to fund its global expansion plans.

In September, the fintech was named as one of the 23 startups on government-backed Tech Nation’s 2019 growth programme.

Main image credit: Getty