London Stock Exchange Debuts New Private Company Trading Platform

The London Stock Exchange completed its inaugural deal on a new trading system that lets investors buy and sell shares in private companies. The first transaction involves Oxford Science Enterprises, a university-linked investment firm valued at $1.75 billion.

The London Stock Exchange completed its inaugural deal Friday using a groundbreaking new system that enables investors to buy and sell stakes in private companies without requiring a full public stock offering.

This milestone transaction established a specialized investment vehicle called a TPEIC to hold ownership interests in Oxford Science Enterprises, an investment company connected to Oxford University. The shares will be available for purchase through organized auctions on the exchange’s Private Securities Market.

The London Stock Exchange became the first organization to receive government approval for operating a Private Intermittent Securities and Capital Exchange System, known as PISCES, as the United Kingdom seeks to stimulate economic expansion, improve access to investment capital, and prevent companies from removing their shares from public markets.

Oxford Science Enterprises carries a valuation of 1.3 billion pounds, equivalent to $1.75 billion, and maintains ownership positions in over 100 companies working in artificial intelligence, quantum computing, and life sciences sectors.

The PISCES framework aims to assist smaller businesses that lack experience with capital markets in gaining attention from potential investors while avoiding the complexities and costs of conducting a complete initial public offering.

London Stock Exchange CEO Dame Julia Hoggett expressed enthusiasm about the development, stating: “We are delighted that the first transaction will take place on our Private Securities Market in the coming weeks.” She emphasized that this demonstrates how businesses can utilize the new framework “in innovative ways to access the solutions that best suit their needs.”