2nd June 2021
Good morning Let’s take a moment to acknowledge the great news that yesterday the UK reported zero Covid-related deaths for the first time since the pandemic began. The pandemic is far from over, but this is a special day in its history to date.
- Public listings for the masses
- More pizza, more problems at Domino’s
Yesterday's market moves
FTSE 100 +0.8% 7,080
FTSE 250 +0.8% 22,875
The markets started the shorter working week in a jolly mood. Both the FTSE 100 and FTSE 250 closed up 0.8%, with the FTSE 250 reaching its highest ever level.
The strong performance was due to weakness in the pound (making profits for UK exporters look more attractive) and positive macro data showing that UK manufacturing growth is at a 30 year high.
Public listings for the masses
What’s going on
Crowdcube, the UK crowdfunding platform, is launching a service that will enable individual investors to buy shares in companies going public this summer.
Why is this important
Initial public offerings (IPO) – when a company sells shares on the stock exchange – are usually reserved for institutional investors like banks and pension funds. It’s only in the days after the IPO when individuals aka retail investors can start to trade the shares.
Crowdcube already has 1 million retail investors on its platform that invest in early stage companies.
Refresher – what is crowdfunding
Crowdfunding is a way for companies, typically in their early stages, to raise cash by selling their shares on a regulated platform. Individuals who like the company or idea can invest as little as £10.
The platforms make their money by charging a commission on the money raised in a successful fundraise.
Crowdfunding started in the UK in 2011 and there are now three main players – Crowdcube, Seedrs and Syndicate Room.
This new proposition opens up Crowdcube to fundraise for more mature companies that have gone past the stage of crowdfunding and who are looking to go public.
Crowdcube is already talking to companies on potential IPOs, with a focus on consumer businesses which would like to open fundraising to their customers.
Some companies already offer access to some IPOs for retail investors, including PrimaryBid which oversaw retail offer for Deliveroo in March.
Crowdcube’s announcement is part of a growing trend of “democratising” investing so that individuals can access opportunities and not just institutional investors in the City and Canary Wharf.
It’s supported by a recent government review on IPOs that recommended that more ways were found for retail investors to take part in public listings.
More pizza, more problems at Domino’s
Domino’s is on the hunt for 5,000 additional chefs and drivers as the UK’s demand for pizza shows "no signs of slowing down”.
Since the start of the pandemic Domino’s has hired 8,000 workers to cope with the increased demand for pizza in lockdown. Many of these new positions were taken by people who were left out of work because of the pandemic for example hairdressers and event managers.
As lockdown restrictions ease people are leaving their Domino’s roles to return to their pre-pandemic jobs. As a result, the chain needs more staff for its 1,100 UK branches.
This comes amidst a hospitality staffing crisis, many venues have warned that they are struggling to hire staff as lockdown eases. The lack of supply of skilled people from the EU following Brexit has been cited as a major cause.
Now that life is slowly returning to normal other companies may find themselves in the same position as Domino’s – struggling to keep pandemic hires from returning to their old jobs.
Stat of the day
In the UK the estimated average life span of clothing is just 2.2 years
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