UK technology company Veremark is preparing a £6 million share sale through the London Stock Exchange’s Private Securities Market, giving employees and early investors an opportunity to sell part of their holdings.

Veremark, which develops technology for employee background checks and screening, is expected to hold the transaction on 7 October. Around 50 employees and early investors could participate in the sale.

The transaction is taking place through PISCES, a new private-market system designed to allow shares in privately held companies to trade through periodic auctions without the company becoming publicly listed.

Veremark was valued at around $100 million following a fundraising round earlier this year. The company has also reported strong revenue growth, with revenue increasing by 241% during the first half of its financial year.

The London Stock Exchange has positioned PISCES as a way for private companies to provide liquidity to existing shareholders while remaining private. Veremark's transaction will be the third technology-company deal to use the new market.

The development is being closely watched as London seeks to expand its private-company investment ecosystem and provide UK technology businesses with additional options between traditional private funding and a full stock-market listing.