Norwegian retail investors gain improved access to private placements through Nordnet and PrimaryBid

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.

“In Norway, a large portion of capital raising has long taken place through private placements, which has limited access for smaller retail investors. Therefore, at Nordnet, we are very pleased to offer a solution for these investors in collaboration with our partner, PrimaryBid. Nordnet’s customers already account for a significant share of the trading volume in the secondary market on Euronext Oslo Børs, and now we are opening even more opportunities for them. This is fully aligned with Nordnet's goal of democratising the savings and investment market and will benefit all players in the market," says Mari Rindal Øyen, Country Manager at Nordnet Norway.

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. After Dutch stockbroker BUX which announced its partnership with PrimaryBid two weeks ago, Nordnet is the second pan-European partner to implement PrimaryBid’s solution which is now being rolled out across Europe. In France and the United Kingdom, this service has already become the market standard for domestic companies raising capital, with over 350 transactions completed since 2016, involving issuers of all types.

“With a shared ambition to democratise the capital markets through technology, the partnership between Nordnet and PrimaryBid is a natural next step. Through this collaboration, Norwegian investors and issuers will enjoy access to options already available in other markets” says Francois De Wiljes, Head of PrimaryBid SA.

PrimaryBid and Euronext have been collaborating since 2018, and this agreement opens new opportunities for retail investors in the Nordics to participate in placements previously reserved for institutional investors. It will also help broaden access across borders. Initially, the service will focus on the Norwegian market, with plans for further rollout in Nordnet’s other markets following the introduction of the Listing Act. The agreement marks an important step toward increased retail investor participation in the primary market.

“We have been partnering with PrimaryBid to enhance retail investors' access to primary markets across Europe. We are very pleased about the Nordnet and PrimaryBid cooperation, which will create new funding opportunities for issuers in the Nordics as well. With this partnership, alongside the upcoming implementation of the EU Listing Act, we expect increased participation from retail investors both within and beyond the Nordics to become the new standard in capital raising,” says Eirik Høiby Ausland, Head of Listing Nordics, Euronext.

Facts:

●    Nordnet is a leading digital platform for saving and investing in the Nordics. The company’s ambition is to democratise savings and investments, providing private savers access to the same information, tools, and services as professional investors. Nordnet offers products and services for both experienced investors and beginners.

●     PrimaryBid is a pan-European B2B technology platform that connects publicly listed companies raising capital with retail investors. In November 2018, the company partnered with Euronext, which covers several European countries, including France, Belgium, and the Netherlands. Since 2016, PrimaryBid has completed over 350 transactions in France and the United Kingdom. PrimaryBid SA, the company’s European subsidiary, is regulated as an investment firm in France and holds licences across all major European jurisdictions. Since 2021, the company has completed 37 transactions in France, where retail investors now actively participate in primary placements.

●     The EU Listing Act is part of the EU’s effort to strengthen the Capital Markets Union by making public listings simpler and more affordable, especially for small and medium-sized enterprises. The Act reduces bureaucracy, simplifies prospectus regulations, and gives companies more flexibility. The goal is to harmonise rules across EU countries and improve access to capital markets.