Our campaign to ensure retail investors are able to buy shares in companies ahead of their listing on the UK stock market is gathering momentum.
In the last few days, both the powerful Association of Investment Companies and investment house Edison Group have put their weight behind 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 big investment companies that are allowed to participate.
Helping the little people: In the last few days, both the powerful Association of Investment Companies and investment house Edison Group have put their weight behind the campaign
Retail investors should also be given the opportunity to get in from the start – rather than having to wait for trading in the shares to commence.
Analysis conducted on behalf of The Mail on Sunday by technology platform PrimaryBid shows that retail investors often lose out as a result of being excluded from IPOs.
Of the 15 biggest IPOs this year where retail investors were shunned, 11 resulted in opening share prices above the listing price. This meant investors wanting to buy shares paid over the odds.
Richard Stone, new boss of the AIC, says ‘private investors are a vital source of capital and liquidity to the UK stock market’ and should be given ‘greater access’ to IPOs.
Fraser Thorne, chief executive of Edison, says our campaign is ‘vitally important’.
He adds: ‘Retail investors tend to focus on funding innovative growth businesses that will play a fundamental role in driving a sustainable recovery. We need every pool of capital at our disposal to put the economy back on track.’
