Pisces aims to transform private share sales in the UK

In recent months, a new trading system called Pisces has been introduced in the United Kingdom to enhance opportunities for private companies seeking to sell shares. This initiative is vital for reviving the stock market and aims to provide more flexible options for these businesses without the need for formal listing on the London Stock Exchange. The approach allows private firms to sell shares during specific intervals, simplifying the process of attracting investments while giving existing stakeholders a chance to liquidate their assets. Last year, financial technology company Moneybox reached a significant milestone, achieving a valuation of £550 million. The firm, established in 2016, provides a platform that encourages users to save through its mobile application. This achievement was facilitated by months of private negotiations with stakeholders, showcasing the effectiveness of initiatives like Pisces that support companies in private fundraising. In an effort to accommodate its immediate investors, Moneybox conducted a secondary share sale that permitted two new major investors to acquire stakes in the company, while existing stakeholders could divest up to 10% of their holdings. This move exemplifies the potential benefits that Pisces can offer private firms by blending the interests of existing investors with new capital sources. The establishment of Pisces is seen as a necessary step to boost London's competitiveness as a financial hub, particularly in appealing to private businesses. As these companies have historically struggled to access the capital markets compared to their public counterparts, this system is expected to offer a more accessible pathway, thereby encouraging investment and fostering growth within the private sector.