Below is an extract from Citywire, follow this link to read the full article.
SyndicateRoom to enable private investors to pool their money and buy smaller company shares on the Alternative Investment Market on good terms.
Online investment platform SyndicateRoom hopes to bring private investors into the less well-trodden world of smaller companies listed on the Alternative Investment Market (AIM), with the launch of a syndicate investing service.
Private investors are finding it harder to get access to public markets, not least AIM. Lloyds’ recent decision to cancel a public sale of its shares serves as a prime example. In addition, investment banks and UK brokers have reduced their research coverage of AIM companies. SyndicateRoom is concerned that private investors now have less access to information and investment opportunities in this part of the market, which is why they took the decision to launch the new service called WatchList.
SyndicateRoom’s members will be offered the opportunity to invest in AIM-listed companies at a discount to their share prices. The platform aggregates demand across members and offers the capital to the company at the most popular discount level. The AIM-listed business can choose whether or not to accept the capital. If so, a transaction is then structured. The companies are effectively able to undertake a capital raise from a broader investor base than normal.