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We’re delighted to announce we’ve taken another step on our journey to a fully functioning Secondary Market; we have now completely removed the price restrictions on sellers listing shares for sale. Previously sellers could only list at a 10, 20, 30% premium or discount to the last valuation price, but as of today sellers will be able to list shares at any price to the minimum / maximum share lot size, from £10 to £25k.
Since we introduced the ability to set a share price different from the last valuation back in August, the market has seen a sizable uplift.
We also saw that the majority of share lots being sold were done so at a price premium, and we’re glad to see that any fears of drastic price reductions were unfounded.
We’ve sought feedback from the businesses being transacted on our platform and we’ve listened to feedback from our investors since this launch. There has been a desire for greater price setting insight prior to setting an offer price but we’ve also been asked to respect the desire of our business clients to keep trading data insights to a minimum.
To achieve both aims, in the ‘sell shares’ journey we will now provide data on the previous market clearance prices. This will not be available anywhere else on the platform, sellers will not be able to interrogate it historically nor will it show the exact price at which share lots have been sold. This graph will not display where we have sales from the previous market of less than £1k, though we may alter this based on usage and feedback.
Our desire is to extend the information available in the ‘sell shares’ journey to show the current share lots currently available which we believe will aid greatly in setting a competitive price (if you want it to sell quickly) or not, as the case may be.
We’ve also heard the desire for greater fidelity in being able to set a price (smaller increments) and there have been calls for the overall range to be extended. To reflect this we’ve extended the preset premium/discount range to +/- 50% and we’ve also opened up the field entirely should sellers want to put in their own price, refer below.
We see this as an incremental update as we continue to monitor investor and client sentiment and respond to concerns and requests. These relatively small changes we hope will continue to unlock value for our marketplace whilst next we shift to look at our checkout experience across all the channels – including the secondary market.