TIDMAQX
Aquis Exchange PLC
24 March 2021
24 March 2021
Aquis Stock Exchange/ShareSoc research finds individual
investors feel there are barriers to their ability to buy growth
stocks
A survey undertaken by Aquis Stock Exchange (AQSE) and ShareSoc
has shown that individual investors do not feel they have good,
equal access to growth stocks.
Key findings of the survey(1)
-- 55% of individual investors polled feel they don't have, or
aren't sure they have, good access to growth companies
-- Around 50% of respondents commented that they do not believe
that they have enough access to IPOs and fundraises
-- Individual investors are frustrated about the privileged
access afforded to institutional investors, often at discounted
prices
-- Over 80% of respondents feel individual investors should be
able to trade shares in any public company they choose,
irrespective of the exchange it is on
Opportunities for the individual investor on AQSE
The survey showed that most individual investors are not taking
up the trading opportunities available on AQSE. AQSE is a home to
growth companies and is dedicated to providing better access to SME
stocks for individual investors.
On the Apex segment of AQSE growth market:
- Individual investors are able to immediately participate in
IPOs as a growth prospectus is required
- Short selling is prohibited (aside from Market Makers)
- Spreads are all within 5% - the result of its previously
announced innovative Market Maker scheme.
AQSE is regulated by the FCA. Companies listed on AQSE are
supported by established corporate advisers, with Canaccord,
Liberum, Peel Hunt, Shore Capital, Stifel and Winterflood
Securities all publicly supporting AQSE's Market Maker scheme.
AQSE is home to established high-profile names such as Shepherd
Neame, Chapel Down, and Arbuthnot Banking, as well as companies at
all stages of their growth journey including Samarkand Group and
KR1. The average market cap of an Apex stock is approximately
GBP78m.
Brokers that currently offer direct electronic trading in AQSE
include Barclays Smart Invest, Jarvis and The Share Centre. Talks
are taking place to extend coverage with AJ Bell, Hargreaves
Lansdown, Interactive Investor and IG Capital.
ShareSoc support for equal access
ShareSoc believes that regulatory and access issues for
individual investors also have consequences for the issuing
companies and for the UK economy as a whole. These include:
-- Liquidity, spreads, costs and ratings on UK exchanges compare
unfavourably with their US equivalents, which discourages many
companies from seeking listings in the UK market
-- Lack of individual investor access to IPOs and fundraises
starves companies of essential growth capital at reasonable
cost
These problems could be significantly ameliorated by making it
easier and simpler for individual investors to access IPOs and
fundraises and to trade shares in all public companies and on all
exchanges.
Alasdair Haynes, CEO of Aquis Exchange, said:
"At AQSE, we aim to provide greater and better access to
individual investors. Unfortunately, many investors are yet to
benefit from AQSE's offering and our provisions for individual
investors, including the access to companies from the IPO stage on
the Apex segment of our growth market.
By providing more information about the benefits of AQSE I hope
that more individual investors will choose to make the most of what
it has to offer as we see more brokers giving them equal access
through direct electronic trading."
Mike Dennis, Director of ShareSoc, added:
"Many UK investors are frustrated by the restricted access they
have to small cap growth companies; they find it difficult to
obtain reliable, quality information to assist their decisions and
are often excluded from IPOs and fundraises. It is pleasing,
therefore, to hear that mainstream brokers are working towards
making it possible for individual investors to access shares in
many small cap growth companies. This will benefit individual
investors, issuing companies, and the UK economy."
(1) The survey was completed by over 450 of ShareSoc's 7,000
members, in January 2021. Half of the respondents have a
significant proportion (>20%) of their portfolios in small caps
and two thirds of those with significant small cap portfolios
define themselves as experienced investors
For more information please contact:
Aquis Stock Exchange
Belinda Keheyan, Head of Marketing +44 (0)7768 078 110
Alma PR +44 (0)20 3405 0209
Susie Hudson / Kieran Breheny / Faye Calow aquis@almapr.co.uk
ShareSoc
Mike Dennis mike.dennis@sharesoc.org
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