Investbx stock exchange put up for sale
BIRMINGHAM’S online stock exchange 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.
However, sources close to the organisation said today that a potential buyer may already have been lined up.
“We think it will be sold because there has been a lot of interest already. Any number of big city investors could be interested in taking on the exchange,” they said.
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 – manufacturer Key Technologies; 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.
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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.
Two other members of staff transferred with her so there are no job losses as a result of the exchange sale.
The stock exchange is thought to have been a victim of the turbulent economic climate. Many investors praised the model when it was first launched but the onset of recession and the drying up of investment generally, acted as a barrier to further flotations.
Despite the situation, the Government last year expressed interest in the online stock exchange model as a way of raising local finance.
Ms Summers even visited Whitehall to talk to Ministers and civil servants about how the exchange worked.
However, with the model now seemingly discredited, whether the idea is progressed further by Government remains is uncertain.
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