A LEADING West Midlands industrialist has said he hopes the sale of Birmingham’s online stock exchange will lead to more fledgling companies in the area accessing vital funds.
Key Technologies, one of the companies in the portfolio of firms owned by Grove Industries, has been floated on the Investbx exchange since November 2008.
Grove chairman David Grove said: “I would hope the Investbx exchange can be sold because any way that we can continue to fund small businesses in the area has to be encouraged.
“Hopefully the new owners will be able to access funds that can be used to support growing companies in the same way Key Technologies has been helped.”
He said Key Technologies had not been affected by Investbx going up for sale and that shares in the business were continuing to trade, partly through an agreement the company has with Brewin Dolphin.
Investbx has been put up for sale due to concerns about future funding in the wake of the demise of regional development agency Advantage West Midlands.
The exchange’s holding company has appointed accountant Mazars to find a potential buyer and parties have until February 25 to register their interest.
Sources close to the organisation have said they believe a potential buyer may have already have been lined up.
The exchange was launched four years ago with a view to helping high growth businesses find the funding they needed. Financing of up to £2m could be available with investors using the online platform to trade shares.
However, despite lofty ambitions only three companies have ever been floated. In addition to Key Technologies they are corporate events firm Teamworks Karting and financial group Early Equity.
Trading in these firms has been temporarily contracted out to another share trading body.
Investbx said before Christmas that changes to the set-up of the organisation were likely following the Government’s decision to kill-off RDAs.
Chief executive Sue Summers moved to new body Finance Birmingham in December when the non-stock exchange arm of Investbx transferred to manage Birmingham City Council’s new Business Loan Fund.
Key Technologies , previously known as STS International Ltd, has operations in Cradley Heath, Gosport in Hampshire and Wimborne in Dorset. The group employs around 240 people, 110 of whom are based in the West Midlands.
