The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

PrimaryBid triumphs in retail campaign

Hedge funds have profited handsomely from the boom in equity capital markets, but retail buyers haven’t been completely excluded.

smartphone-business-stocks-780.jpg



All investors matter.

That was the title of an open letter, posted back in April by app-based retail platform PrimaryBid to the boards and managements of UK companies, then pouring out emergency capital raisings in a desperate effort to re-enforce their balance sheets at the height of the first Covid panic.

Retail investors were being excluded from these, even though they accounted for 20% of secondary turnover in the FTSE All-share index, with anywhere from 60% to 74% of that being buy orders.

Those equity raises typically priced at discounts to already beaten down share prices.

But as soon as they were completed – in some cases, as soon as they were announced – and balance sheet safety secured, share prices could soar by 20% or 30%.



Boards are very focused on protecting existing shareholders. But they need to manage a trade-off between perfect pre-emption rights and reducing exposure to market risk and volatility in a capital raising - Nick Koemtzopoulos, Credit Suisse


The capital markets hedge funds made out, selling to retail brokers for a quick buck.








You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree