Moneybox private securities market trading began with a £45 million auction for long-serving employees, and the deal valued the UK fintech at about £800 million.
The London Stock Exchange said on Wednesday that Moneybox completed the first transaction on its Private Securities Market. Crowdcube ran the employee sale and investor purchase process as the Registered Auction Agent. Meanwhile, Cavendish assisted on the deal, and Latham & Watkins advised Moneybox.
Karen Kerrigan said the transaction marked a key point for Moneybox as the company marks its tenth anniversary. She also said Moneybox has built a profitable business and no longer depends on raising primary capital to support growth. As a result, the firm could reward employees and bring in long-term institutional investors.
Moneybox Private Securities Market Debut
Kerrigan said the Private Securities Market gave Moneybox a way to use public market infrastructure and still remain a private company. She added that the company could keep control over how and when it provides liquidity.
Dame Julia Hoggett said the London Stock Exchange was pleased to support Moneybox in this stage of its growth. She said the move gives long-serving employees a chance to realise value from what they helped build.
How the Market Structure Works
The London Stock Exchange said the Private Securities Market gives private companies and shareholders access to intermittent liquidity auctions. That includes employees. However, companies still keep control over trading frequency, investor access and price formation while using the exchange’s public markets infrastructure.
The exchange added that the market is built on the UK government’s PISCES framework. It also said existing EMI and CSOP options can be changed to allow exercise and sale on PISCES venues.
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Source: LeapRate
