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The government’s willingness to revive London with a new system for trading private companies’ stocks has been dismissed as unnecessary by venture capital and private equity executives, and has now entered a “new version” of the UK’s disease junior AIM market It is likened to.
The private intermittent securities and capital exchange system (Pisces), proposed by the former conservative government and supported by Labour Prime Minister Rachel Reeves, will allow private investors to sell shares in regulated exchanges. I’ll allow it.
The London Stock Exchange Group is one of the companies that plans to operate a trading venue in Pisces, allowing you to trade stocks in a limited number of days each year.
However, investors question how much demand there is for the system, and bosses of fast-growing companies opt in because they risk controlling who owns the stocks of the business. He adds that he is reluctant to do so.
“I don’t know who’s going to use it,” said a partner at a top venture capital firm. “This is a bold solution to a much more complicated problem than the main character willingly understand.”
Hussein Kanji, who founded Hoxton Ventures, said, “What problems does this solve?” For venture capital backers, the new system is problematic for private exchange trading stocks to allocate prices listed in portfolio companies to “low, perhaps unstable” companies.
The Treasury said Pisces offers incentives to rapidly growing companies to act as “intermediate steps” based on themselves based on the UK.
The London Stock Exchange is struggling with investment outflows and valuing inactive companies, with well-known groups such as Chip Designer Arm Holdings floating overseas, and public companies such as betting group Flutter have made a major list of New York It is being moved to.
Secondary stock sales in private companies are becoming more prevalent as companies wait long for their lists, forcing investors to win other ways.
In the US, NASDAQ Private Market has been allowing investors and employees to trade stocks in the company since 2013, but platforms like Crowd Cube, Seedrs and JP Jenkins have made it possible to trade stocks in the UK. Masu.
However, multiple venture capital and private equity investors, the government said Pisces is “interested” are unlikely to use the platform to sell stocks in their portfolio companies, or they but he told the Financial Times he didn’t think it would be. Attract high quality businesses.
Venture capital partners avoid dumping stocks on the first day of their final public list, the CEO of the top and fast-growing startup ownership owns the stock. He says he wants to “strongly control him.”
The head of an international private equity company added that he is working with shareholders they didn’t know that it was “difficult to manage.”
The Financial Conduct Authority proposed that a “very limited” range can be set for the type of investors who can purchase stocks, including situations where they specify a list of “specific individuals.” It proposes that companies can limit the price ranges where stocks can trade.
Guernsey-based International Stock Exchange (TISE) is already offering services by companies that run auctions of their own shares without a broker. Tise’s CEO Cees Vermaas said he doubts Pisces will be successful based on his experience.
“We are skeptical of the rules [for Pisces] Companies still have disclosure requirements, so go ahead and be sure to succeed,” he said, adding “there are a lot of the cost of the full list.”
“Pisces is just a new version of AIM,” refers to London’s junior stock market, which suffers from declining listings and low liquidity despite fewer stricter rules than the main London Stock Exchange markets. And Vermaas said.
The FCA said Pisces could “open the door to more opportunities for investors and change the way private companies access and grow,” but the Treasury said the proposal was ” It’s just a small part.” . . Creating new listing rules and pensions In addition to creating “megafunds,” broader reforms to increase competitiveness and investment.
Charles Hayes, a global co-haze of private capital at law firm Freshfields, said, “For everything.” [buyout executive] Those who say “we don’t want to deal with thousands of investors” will see a clear direction for travel towards increasing routes to liquidity. . . broader access to private capital.”
