Nordnet is partnering with the technology company PrimaryBid, which is supported by Euronext. This collaboration will provide Norwegian retail investors with better access to private placements. This new solution will offer retail investors the opportunity, via Nordnet, to subscribe for shares in a tranche specifically designed for them.
In recent years, over 80 percent of the capital raised in the Norwegian market has primarily come through private placements, effectively limiting participation to a select group of investors. The current practice of organising Subsequent Offerings can be improved. It creates a lot of complexity for the issuers and retail investors remain exposed to dilution risk as seven out of ten are cancelled because the stock price falls below the issue price.
Nordnet and PrimaryBid aim to address this by providing retail investors with better opportunities to participate in private placements. Current regulations allow for a separate offer to retail investors of up to 8 million euros, provided that the company has not used this option in the past 12 months and that a national prospectus is prepared.
Through the new partnership with PrimaryBid, Nordnet can now offer a solution enabling retail investors to gain better access to private placements alongside institutional investors. Therefore, at Nordnet, we are very pleased to offer a solution for these investors in collaboration with our partner, PrimaryBid.
The agreement coincides with the introduction of the EU Listing Act, which is expected to come into effect later this year in the EU and subsequently in Norway. Once implemented, this law will remove the 8 million euros cap as well as the national prospectus requirement enabling greater participation from retail investors.
