PrimaryBid Is Negotiating A Possible Takeover With Multiple Investors and Financial Institutions
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
PrimaryBid, a company that powers smart retail inclusion in global capital markets, is currently negotiating with several financial institutions and investors about a potential takeover.
According to reports, the retail investment platform is collaborating with a number of advisers to field interest in a takeover. Right now, the platform counts several major players among its investors, such as the London Stock Exchange Group, the SoftBank Vision Fund, ABN Amro, and Fidelity.
Anonymous sources familiar with the inner workings have also said that the process is being conducted quickly and that it could soon be concluded. If this does happen, a takeover could be organized at a rather significant discount to the $500 million valuation, which the platform attracted as far back as three years ago.
PrimaryBid Under A Strategic Review
The platform managed to attract a number of high-profile customers over the years, with some of the biggest examples being Lloyds Banking Group and PensionBee. However, it has also been hit by a severe slowdown in equity capital markets activity, which led it to launch a strategic review.
The firm hired a market infrastructure specialist from the US, Rosenblatt Securities. The specialist will now evaluate what strategic options the company has to pursue, in hopes of finding the best available solution to the current situation.
Recent reports from trade publications have revealed recently that the LSEG had written down the value of its 7.2% stake in PribaryBid by 87%. In doing so, it implies that the business’ valuation now sits at only £56 million.
It is also worth noting that PrimaryBid was founded around nine years ago now, in 2016. Since its establishment, it raised roughly around $250 million. The firm was founded with a simple, but fairly compelling vision of helping regular investors gatecrash the closed City ranks of corporate fundraisings and flotations by aggregating demand from retail shareholders into a single, large order.
In other words, the mission was to democratize access to public markets, which won the support of market participants, but also politicians. It made major progress in achieving this goal during the pandemic, but since then, the mentioned equity capital markets activity slowdown set it on the path that led to the current strategic review and a potential takeover.
