Trading 212 UK Limited, which is an FCA-regulated online broker, has raised £13.75 million in capital with the allotment of new company shares.
According to the latest Companies House filing, the broker has issued and allotted a total of 13,750,000 shares on July 27 at a nominal value of £1. Additionally, the company highlighted that all of the newly issued shares have been allotted in exchange for cash.
The proceeds will be utilized for boosting the growth of the brokerage business.
The Need for Cash
The latest cash injection followed another similar pump of little more than £6 million that was completed last May. In addition, it raised £2 million in August 2020. Borislav Nedialkov and Ivan Ashminov are the co-founders of Trading 212 and are also its controlling shareholders.
After the fresh capital injection, the UK brokers total share capital jumped to £24.56 million.
Trading 212 is a multi-regulated broker, offering trading services with forex, company shares and CFDs. Apart from the UK, it has extensive operations in the European Economic Area as well. Finance Magnates recently reported that the company has started to migrate its clients based in the European Union to Trading 212 Markets Limited, which operates with a CySEC license. This step was taken after the implications of Brexit.
Moreover, the trading platform benefited heavily from the retail trading frenzy, mostly during the skyrocketing demand for meme stocks earlier this year. The platform was even forced to shut new accounts as its infrastructure could not cope up with the rising demand. Though the broker has not disclosed its financials for the period yet, solid figures can be expected from it for 2020.
Meanwhile, the UK broker made a major change in its leadership earlier this year as industry expert Mukid Chowdhury took over as its Chief Executive Officer.