A new initiative aimed at creating equality in the stock market for retail investors has gained momentum with the establishment of RetailBook, a company focused on connecting individual shareholders with lucrative investment opportunities.

On Monday, the chief executive of RetailBook announced a “significant milestone” as the company transitioned from being part of Peel Hunt, a prominent stockbroker, to operating independently.

RetailBook is based on REX, a technology platform originally developed by Peel Hunt, designed to enable individual investors to engage in listings and major fundraising activities that have historically excluded retail participants.

The venture secured £2.5 million in funding from investors, including Peel Hunt, in March as part of its separation from the stockbroker. Following this, it received authorization from the Financial Conduct Authority (FCA), the regulatory body for the City, in April.

There has been ongoing criticism regarding the disadvantages faced by individual investors during fundraising events. Typically, shares from public flotations are allocated solely to institutional investors, who are positioned to benefit from a price surge once trading begins—a phenomenon known as a “pop” orchestrated by investment banks organizing the listings.

Retail shareholders have also been excluded from share placings of listed companies, often sold at prices lower than the market rate. This has resulted in missed opportunities for retail investors, who have risked both losing out on favorable prices and seeing their existing investments diluted.

While investment banks often cite the complexities and costs associated with including smaller investors in listings, advancements in technology are shifting the landscape toward greater accessibility.

The UK government and regulatory authorities are actively promoting public investment participation as part of broader efforts to enhance the vitality of Britain’s capital markets, in light of concerns over low valuations of London-listed companies and a decline in initial public offerings (IPOs) in recent times. June’s IPO of Raspberry Pi marked a significant departure from this trend, and the company is set to unveil its first post-flotation results on Tuesday.

Aaqib Mirza, the CEO of RetailBook, stated: “Our vision at RetailBook is to cultivate fairer and more inclusive capital markets for retail investors.”

RetailBook positions itself alongside other platforms, such as PrimaryBid, established in 2016, and Winterflood’s WRAP service, enabling private investors to participate in IPOs and follow-on fundraisings.

Having been in development for nine years, Peel Hunt’s REX platform is now set to thrive independently under RetailBook, with the intention of enhancing its growth potential by eliminating perceived conflicts of interest with Peel Hunt, which might have hindered business referrals from other banks.

Reinforcing this strategy, RetailBook disclosed last year that major investment banks, including Rothschild, Jefferies, and Deutsche Numis, in addition to Hargreaves Lansdown—the UK’s leading DIY investment platform—have agreed to collaborate with the initiative.

Mirza, who previously served as Peel Hunt’s chief technology officer, participated in the founding fundraising with a personal investment of £75,000. Additionally, Steven Fine, the chief executive of Peel Hunt, contributed £100,000, while Darren Carter, a seasoned City figure and non-executive board member of the broker, invested £772,000.