A tech platform for armchair investors is poised to axe its UK consumer app after a dearth of deals in the London market forced it to explore expansion overseas.
PrimaryBid, which allows ordinary people to buy shares when companies list, is preparing to stop taking orders directly from UK retail investors as it seeks to divert its financial resources for US and EU expansion.
Since launching in 2016, the Softbank-backed group has been hailed as a radical new force in the London stock market, enabling small shareholders to take part in IPOs and fundraising.
It helped ordinary people take part in deals by Aston Martin, Asos and Deliveroo, sending them notifications when fundraisings were launched and enabling users to invest at the touch of a button.
However, it is understood that most orders now come to PrimaryBid via platforms such as Hargreaves Lansdown and AJ Bell, meaning the costs associated with going directly to customers are no longer justified. The group has a string of tie-ups in place with large platforms, including Lloyds Banking Group.
The tech group is planning a significant overseas expansion by building a large presence in France and the United States.
The mothballing of PrimaryBid’s direct-to-consumer arm is likely to be seen as another blow for London’s moribund stock market, which has suffered from a dearth of new listings.
The lack of demand has prompted wider fears that the capital is losing out to New York as a global financial centre.
