Skip to content

Bit of a surprise from The Guardian

They’re recommending an American idea:

The aim is to lessen the perceived cliff edge between private ownership and quoted life. A company would get access to a bit of public market liquidity without the full-blown reporting demands of a proper IPO. Early-stage backers would be able to cash in a few chips, which might dampen their lobbying for an all-or-nothing outcome in which a trade sale too often beats an IPO. Big UK institutional investors would be able to test the waters, get familiar with a company and maybe, over time, exert influence in favour of the stock market.

The proposal is clearly not a cure-all (reforming the regulatory rulebook in areas where London’s setup just looks more cumbersome than other venues is probably more important). Nor is it likely to happen soon, since stock exchange officials are clear that some serious rewriting of rules would be necessary, not least to ensure equality of information between all investors while still preserving the looser touch of private life. Nor, obviously, would all companies on such a new platform convert to the full market. But, after a taster experience, some might.

At the very least, it is a genuinely novel idea since it isn’t being done elsewhere.

No, it’s not novel and it is being done elsewhere. That’s exactly what Second Market is.

Leave a Reply

Your email address will not be published. Required fields are marked *