The British fintech PrimaryBid is recruiting city heavyweight Brydon as its new chairman | Business news
A UK tech company that gave ordinary investors access to a barrage of corporate cash calls during the COVID-19 crisis is set to appoint one of the city’s biggest heavyweights as its first chairman this week.
Sky News has learned that PrimaryBid has recruited Sir Donald Brydon to fill the position, which is seen as a signal of his growing ambition.
Sir Donald is a former chairman of the London Stock Exchange Group – one of PrimaryBid’s shareholders – and has held numerous influential positions at the top of the UK economy, including chairing the Smiths Group and the Royal Mail Group, which he helped privatize in 2013 .
This week he will retire as chairman of Sage Group, the FTSE 100 software company.
Coupled with his role as Chairman of Tide, the Digital Banking Group, his appointment to PrimaryBid will highlight changing trends in financial markets in the UK and beyond.
PrimaryBid, founded in 2016, uses an app to combine stock orders from small investors into one substantial application.
The recruitment of Sir Donald brings into play a figurehead who has recently been heavily involved in developing the city’s approach to corporate governance and capital markets.
The timing of his arrival is also opportune as, following a review led by Lord Hill, the former European Commissioner, he recommended a series of reforms in the UK financial markets.
John Glen, the city secretary who retained his role in Boris Johnson’s recent government reshuffle, said recently that the Treasury Department “aims to facilitate wider ownership of public companies and remove current barriers to securities issuance.” Investor Groups – Including Small Investors “.
“This will allow a wider cross-section of society to benefit from their growth. It will also allow the companies themselves to access a broader investor base and improve the functioning of the market as a whole by increasing the liquidity of the markets,” said Glen.
LSEG was funded last year as part of a € 50 million financing round.
The fintech was helped by changes to the pre-emption rules at the beginning of the crisis, which allowed companies to increase their cash amount without going through lengthy shareholder approval processes.
PrimaryBid’s rapid growth has also been aided by smart marketing, such as an open letter signed by city leaders in April 2020 urging public company executives to help private investors raise capital.
The letter was sparked by concerns that ordinary savers were denied the opportunity to participate in heavily discounted stock sales, and their pain worsened after the value of their stock portfolios fell during the market downturn at the start of the pandemic.
Retail investors directly own 13.5% of the UK stock market which, according to 2018 ONS data, equates to around £ 420 billion.
PrimaryBid is also expanding into other European markets and aims to become a major player in the US capital markets in due course.
Other shareholders include well-known venture capitalists such as Hambro Perks and OMERS Ventures.
PrimaryBid declined to comment on Sunday.