InvestorHub has officially launched its services in the UK today, aiming to enhance how companies listed on the London Stock Exchange engage with their retail investors and boost liquidity.
Having established a robust presence in Australia by supporting over 100 listed entities on the ASX, including notable companies like Brazilian Rare Earths and Race Oncology, InvestorHub is now expanding its reach as part of its ongoing growth strategy.
The platform offered by InvestorHub equips public companies with the necessary tools and data to establish direct, at-scale relationships with retail investors. This strategic move significantly reduces these companies’ dependence on less reliable and inefficient third-party services. By fostering independence from intermediaries, companies can streamline operations and focus more on their core business activities.
InvestorHub’s new membership in the London Stock Exchange Group (LSEG)’s marketplace underscores the critical role retail investors play in the expansion of market growth. Supporting data from LSEG highlights that 87% of daily trades involving smaller companies are made in retail investor-sized transactions (less than £10k).
Companies that have integrated InvestorHub’s technology have seen an average investor base increase of 18%. The direct engagement facilitated by the platform not only saves time and money but also enhances investor interaction, which is crucial for company growth and valuation.
InvestorHub COO & Head of UK Alex Stella shared insights into the market dynamics, “The way companies engage with investors in its current form is not working, especially in the UK where valuations are well behind other markets. The technology used to allow retail investors to purchase shares in listed businesses has advanced rapidly, whilst the tools used for subsequent communication and engagement has stood still.
“Part of the reason for this undervaluation is the disconnect between listed businesses and their investors. Intermediation promised to make investor relations easy, but it has just made it ineffective. Retail investors are the marginal buyers in UK markets. They are the investors that determine the value of public companies. If we want to restore the status of the LSE as a destination for great British business, we can’t keep going back to the traditional solutions of intermediation that clearly aren’t working.”
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