By: 8 May 2024

The move will help listed companies engage more effectively with retail investors

InvestorHub expands into UK

InvestorHub has launched in the UK to help companies on the London Stock Exchange to engage more effectively with their retail investors and improve liquidity.

Already a success in Australia, the fast-growing business supports more than 100 listed companies on the ASX, including Brazilian Rare Earths and Race Oncology. The launch in the UK is the latest step in the company’s growth strategy.

InvestorHub’s platform gives public companies the tools and data to build direct relationships with retail investors at-scale, thus reducing reliance on unpredictable and inefficient third party services. Doing so eliminates allows companies to operate independently of intermediaries or third parties.

The company has become a member of the London Stock Exchange Group (LSEG)’s marketplace, recognising the importance of the retail investor’s role in market growth.  This is supported by data from the LSEG, which shows that 87% of daily trades involving small companies are of a retail investor size (<£10,000).

Public listed companies already using InvestorHub’s technology have increased their numbers of investors by an average of 18%. By forming direct relationships with their investors, these businesses have been able to save time, money and increase engagement.

Alex Stella, chief operating officer and head of UK at Investorhub, said: “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.”

Image: Benjamin Davies on Unsplash

Robert Welbourn
Robert Welbourn is an experienced financial writer. He has worked for a number of high street banks and trading platforms. He's also a published author and freelance writer and editor.