The English platform wants to democratize access to the primary equity market. Individual investors will be able to access it via Boursorama, Bourse Direct or Easy Bourse.
A new service is launched on Tuesday 1is June for individuals active on the stock market: PrimaryBid. This company, inaugurated in the United Kingdom in 2016, has one objective: to democratize access to the primary equity market. In France, individuals can easily subscribe to IPOs since generally up to 10% of the capital is dedicated to them. However, they then rarely have the opportunity to participate in the following operations, in particular in capital increases with elimination of preferential subscription rights, which are reserved for institutional investors only. And yet these can be interesting!
A partnership with Euronext
« Thanks to our technology and a partnership with Euronext, we allow individuals to access accelerated placements. These can present a significant discount on the stock market price. », Notes François de Wiljes, head of PrimaryBid in France. For example, at the end of 2020, McPhy Energy, a company specializing in zero-carbon hydrogen production and distribution equipment, carried out a capital increase of 180 million euros. Result: 23.50 euros the new share, ie a discount of 8.56% compared to its stock market price. More recently, in January, the expert in engineering and drilling for the oil and gas industries, Dolfines (ex-Dietswell) issued 300,000 new shares, at a unit price of 2.20 euros, or a discount of 22%! At the time, individuals were not invited to this type of transaction.
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A free service for individuals
Now you will be able to access it. The PrimaryBid service is accessible at no additional cost via three brokers: Boursorama, Bourse Direct and Easy Bourse. The only downside is that these are accelerated placements. They take place very shortly after closing. You will therefore only have a few hours to decide whether or not to participate. However, unlike an IPO, you have full price history and more financial information available. To see if the risk-taking can pay off.
Fairer treatment of shareholders
On average, around fifty operations of this type take place each year in France. This applies to all categories of issuers: from small companies to the largest. ” We reserve an envelope of eight million euros for individuals. Our service aims for fair treatment between shareholders and should convince listed companies to better include savers in their capital in a logic of good governance“, Explains François de Wiljes. It remains to be seen whether the latter, who will have to pay to make their operations accessible to individuals, will play their game well.