On 12 June 2026, the world's largest IPO – SpaceX – hit the market. Thanks to the capital market reforms implemented in January this year, it was the first time that UK retail investors had been able to participate in a non-UK IPO.
More than 100,000 orders were received by Winterflood, a division of Marex Group plc, which had won the mandate for distribution in the UK, with a value of around US$1bn – the greatest number of retail participants since the Royal Mail IPO in 2013.
SpaceX was the first international company to use the Public Offer Platform (POP) regime, the FCA-regulated framework that allows companies to raise capital from a broader investor base – that includes retail consumers – without a traditional prospectus or a public market listing, provided it is done via an authorised electronic platform.
That expansion is already taking shape in the sterling bond market, where the prospect of additive demand, diversification and consumer engagement is gaining traction among issuers
Retail investor appetite for securities is not confined to equities, but exists for bonds too, with participation expected to expand as the new regulations remove barriers to retail participation in capital raisings by issuers.
That expansion is already taking shape in the sterling bond market, where the prospect of additive demand, diversification and consumer engagement is gaining traction among issuers.
British American Tobacco plc was the first to retail-enable its Bond Base Prospectus, publishing this on 18 March, with London Stock Exchange Group plc (LSEG) publishing its own a day later. Since then, SSE plc, Vodafone Group plc, The British Land Company plc and Tesco plc have followed suit and, in doing so, have given themselves the option to access a retail investor base in a sterling bond issue.
On 20 April, following a one-month consent solicitation process, LSEG's three outstanding sterling bonds – £1.4bn in total – converted into retail-accessible, low-denomination, plain vanilla listed bonds, removing them from being the preserve of institutional investors. The existing noteholders voted strongly in favour of the proposals, which was remarkable given that no consent fee was paid. It showed their belief that including retail investors in the bonds was in their own best interests.
Secondary market trading in these bonds by retail investors has already started to pick up. The cultivation of retail investors bodes well for LSEG, with additional liquidity in their existing bonds and a larger, engaged investor base being positive for any future sterling bond issues.
Retail investor appetite remains strong however, with the two most recent new-issue gilts having raised more than £210m from UK retail investors
Despite these positive signs, the first new-issue, retail-inclusive, sterling investment-grade bond remains elusive. The war in Iran and domestic political instability is adversely affecting the gilt markets, leading to volatile yields. Because gilt yields are the basis of sterling corporate bond pricing, issuers have been reluctant to commit to a new issue.
Retail investor appetite remains strong however, with the two most recent new-issue gilts having raised more than £210m from UK retail investors. The interest shown by UK retail investors in securities such as SpaceX and gilts gives every indication to treasurers that a retail-enabled investment-grade bond would be very well supported by this relatively untapped pool of capital in both the primary and secondary market, bringing benefits such as additive demand, funding diversification and consumer engagement. Furthermore, regulatory change implemented in January this year has removed barriers to their inclusion that existed previously, with some corporates already showing how to make use of this.
James Leather, Corium Treasury Limited
