May budding stock marketers rejoice: new investment opportunities are about to open up to them. The young British startup PrimaryBid indeed announced Monday the launch of its platform in France, in partnership with the European stock exchange operator Euronext. Launched in 2012 and based in London, PrimaryBid intends to offer individuals the possibility of accessing the share issues of listed companies, on the same basis as institutional investors.
The current law indeed prohibits individuals from participating in capital increases through the issue of shares without preferential subscription rights. In order to remove this obstacle, PrimaryBid acts as a bridge between the market and individuals by purchasing shares on their behalf.
Democratizing Capital Markets
So, ” PrimaryBid corrects a market flaw that effectively excluded [les particuliers] of certain operations », Estimates Anthony Attia, head of primary and post-market markets at Euronext.
The ambition displayed by the CEO of PrimaryBid, Anand Sambasivan, quoted in a press release, “ is to democratize capital markets».
« With this partnership, Euronext strengthens its commitment to promote individual investors’ access to capital markets and to broaden the financing options available to companies listed on its markets. », Specifies the joint press release published by PrimaryBid and Euronext.
The investment of individuals boosted by the Coronavirus
Many individuals idle during confinement became interested in financial investment. In the United States, according to Goldman Sachs, the number of daily transactions on the financial markets doubled in early 2020, when restrictions were put in place to limit the spread of the pandemic.
In France, more than 1.3 million individuals placed a buy or sell order on shares in 2020, according to the Autorité des marchés financiers (AMF). Among these, 410,000 budding stock marketers passed their first stock market order last year. From February 24 to April 3, 2020, purchases of French shares by individuals reached a total net amount of 3.5 billion euros, four times higher than in 2019 over the same period.
And the trend is set to continue with the reopening of the economy. In the first quarter of 2021, individuals thus carried out 18.2 million transactions in France on shares admitted to trading in Europe, ” a record level », « in line with the high volumes observed in 2020“, Noted the AMF in April.
A very favorable context for start-ups wishing to democratize investment. Robinhood, a trading application from Silicon Valley, which relies on an intuitive interface coupled with the use of certain gaming codes to democratize financial investment and attract young users, recently raised $ 3.4 billion, after gaining 3 million users in 2020. It is due to go public soon.