Capital raising in the current climate

Reaching the broadest set of investors

Reaching the broadest set of investors

A PrimaryBid Webinar in association with

A PrimaryBid Webinar in association with

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What to expect

The current crisis has had a dramatic effect on new share issuance activity as companies have raced to shore up balance sheets and reposition for the economic fallout of the pandemic. A number of high profile transactions have printed and indications are that new issuance deal flow is not going to abate soon given mounting capital needs across a host of industries.

To discuss corporate fundraisings in the current climate, PrimaryBid hosted an esteemed panel of industry experts on April 15th, 2020. The discussion focused on the important implications for corporations raising capital and the financial ecosystem serving their needs.

Panel Moderator

David Stevenson, Investment Columnist

Panellists

Charlie Walker

Head of Primary Markets

Tom Johnson

Head of Capital Markets

Andy Brough

Fund Manager

Andy Bell

CEO & Founder

Anand Sambasivan

CEO & Co-Founder

Key highlights

Technology has transformed the capital raising landscape

Institutional shareholders are keen to support strong, viable ongoing businesses but companies who have had challenged business models will struggle to raise capital.

A huge fundraising effort is underway for listed companies

In 2008, fundraising volumes spiked to £70bn in the UK and the recapitalisation programme took 2 years. This time around it is happening much quicker. The upcoming funding requirements will need a large pool of liquidity and retail investors can be a great source of capital.

Retail investors are driving volumes in the secondary market

Retail investors are showing unprecedented levels of support for UK PLCs. The London Stock Exchange are seeing record high secondary trading volumes of £10-12bn per day – triple the regular volume.

The Pre-emption Group released a statement supporting non pre-emptive capital raises up to 20% in order to help companies raise capital due to the pandemic

Soft pre-emption rights need to be observed, however, and the technology is now available to include retail investors alongside institutions.

Liquidity, particularly in the mid and small cap space, is one of the biggest issues in the capital markets

This has been driven by consolidation in the Funds market and retail investors can be a key solution to help.

Retail investors are loyal and have on average have a 70/30 buy-to-sell ratio

In the current crisis we need to need to ensure money is deployed where it is needed most. Retail accounts for a large pool of capital and will put it to use if there is opportunity.

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