PrimaryBid, a partner of the London Stock Exchange, is joined by senior City stakeholders in signing an open letter to the boards and management teams of the UK’s listed companies.
The letter calls on FTSE and AIM-listed companies to include retail investors in any forthcoming equity recapitalisation plans, following guidance from the pre-emption Group and the FCA allowing companies to issue up to 20% of their share capital.
The letter and initial signatories, available at www.allinvestorsmatter.co.uk, asks boards to protect individual shareholders and employees by respecting their right to participate in any fundraising alongside the institutional investors, management teams and board members.
The letter is co-ordinated by PrimaryBid, a partner of the London Stock Exchange, which is working with retail brokers and the investment banks and city law firms co-ordinating these transactions to make retail inclusion the default option when UK listed companies raise equity capital. Since the open letter was published, thousands of retail investors have signed up to use the platform.
Anand Sambasivan, CEO and Co-Founder of PrimaryBid, said:
“Retail investors should be afforded the same protections and participation rights as other company shareholders. The technology now exists to include retail in these fundraising details without compromising on timetable or execution.
“Coronavirus has put significant pressure onto many of the UK’s listed companies who now need to raise equity, including household names with large retail investor followings. It’s only fair that those retail investors can be part of a Great British Recapitalisation.”
The letter’s founding signatories also call for continued engagement from other industry bodies in codifying best-practice guidance around retail inclusion.