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London Stock Exchange in Talks To Take Over Parts of PrimaryBid – Sky News

Sam Boughedda trader
Updated 12 Jun 2024

Sky News reported late Tuesday that the London Stock Exchange (LSE) is in advanced talks to take over parts of PrimaryBid, a leading British fintech company.

Stock Exchange

YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The move is said to be aimed at strengthening the LSE's offering for retail investors. According to Sky, the deal would involve acquiring PrimaryBid's retail capital-raising technology, regulated activities, and key UK operations.

This aligns with PrimaryBid's shift towards becoming a pure-play technology business, prompting Sir Donald Brydon, its chairman, to step down.

The reported discussions come amidst anticipated reforms to UK listing rules, aiming to make London more attractive for investors. A deal with PrimaryBid would reportedly grant the LSE access to PrimaryBid's technology and potentially streamline operations. The exact acquisition price remains undisclosed.

For PrimaryBid, the deal signifies a move away from regulated activities and towards becoming a software-as-a-service company.

Founded in 2016 to empower retail investors, PrimaryBid facilitated capital raising for companies like Compass Group, Asos and Aston Martin during the pandemic.

On its site, PrimaryBid says it has worked with other big London-listed names such as IG Group, Deliveroo, Barclays and Ocado. In addition, it lists Euronext Paris, the London Stock Exchange and the NYSE as organisations its has worked with.

While it expanded overseas, a lack of London listings impacted its business. The potential deal, however, could be well-timed for the LSE with Raspberry Pi's recent listing and rumours that Chinese online fashion company Shein could IPO in London.

PrimaryBid's current investors include the London Stock Exchange, Molten, Strategic Ventures, Pentech and ABN Amro.

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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.