‍Pioneering retail inclusion

In March 2023, PrimaryBid worked with the Blackstone Consortium and Thomson Reuters in executing a landmark transaction, enabling retail investors to participate in a £2bn trade of London Stock Exchange Group shares.

This was the first time that UK retail investors were able to participate in the block sale of a FTSE 100 company. Notably, the initial deal size saw an increase of 20% owing to strong demand from investors. In its own way, a giant leap forward on the journey of broader retail inclusion.

‍

Repeated success

Following the success in March, the momentum of retail-eligible secondary sales in the FTSE 100 persisted with the occurrence of a second and third block trade in May and September 2023 respectively, marking the third successive time PrimaryBid has given individuals access to these large sell-downs.

The retail offering was significantly oversubscribed across the three deals. Retail allocation was capped at €8m due to legacy EU Prospectus rules, currently being reviewed by the FCA. This follows HM Treasury’s Austin review into improving UK secondary capital raising and involving retail investors more fulsomely.

‍

Changing the game

This was an excellent demonstration that retail investors can be rapidly mobilised on accelerated transactions and the breadth of their participation via wealth managers, investment platforms and direct.

The success of these retail-eligible secondary sales is likely to inspire further opportunities in the market. The consecutive events in March, May and September set a precedent for future transactions and will undoubtedly shape the direction of retail-eligible secondary sales and financial transactions as a whole.

‍