Back to resource centre

How different shareholder demographics behave post-placement.

InvestorHub undertook an investor behaviour analysis to understand the post-placement activity for dozens of issuers and how different investor demographics (in this case, new versus existing) behaved post-placement. The difference that we found between the cohorts is not what you may expect given the general perception of existing versus new shareholders' behaviour. 

We posted a poll last week to see what you thought would be expected in this situation. Specifically, whether it’s existing or new shareholders that are more likely to sell during the post-placement period of a capital raise. 75% of poll participants agreed that it was new shareholders that are more likely to sell down positions and this is reasonable considering many would argue that holding multiple tranches of a stock is indicative of shareholder loyalty. 

75% of poll respondents are correct, however, our data suggest that the difference between these shareholder demographics is much smaller than most would expect. 

  1. Both demographics are equally likely to downgrade (reduce positions).
  2. New shareholders are slightly more likely to sell out completely (35% vs 30%)

When it boils down to a single statistic; new shareholders will either downgrade or sell out 51% of the time versus 46% for existing shareholders

Was this the difference you expected, because it certainly seems minor to me; especially when you consider how differently new and existing shareholders are perceived when discussing investor behaviour. 

It’s fairly easy to think that post-placement activity can be attributed to a single investor demographic but as seen above, it doesn’t appear to be quite so simple. If anything, this supports that post-placement strategies around retention and engagement, apply to all investor types.

Want to dig into these stats yourself? InvestorHub offers a post-placement analysis feature for clients to uncover insights into your shareholder behaviour.

Join our D2I marketing newsletter.

Subscribe to receive regular investor marketing insights, how-to guides, and case studies.


By submitting your email address and any other personal information to this website, you consent to such information being collected, held, used and disclosed in accordance with our privacy policy and our website terms and conditions.

Cookie Settings
This website uses cookies

Cookie Settings

We use cookies to improve user experience. Choose what cookie categories you allow us to use. You can read more about our Cookie Policy by clicking on Cookie Policy below.

These cookies enable strictly necessary cookies for security, language support and verification of identity. These cookies can’t be disabled.

These cookies collect data to remember choices users make to improve and give a better user experience. Disabling can cause some parts of the site to not work properly.

These cookies help us to understand how visitors interact with our website, help us measure and analyze traffic to improve our service.

These cookies help us to better deliver marketing content and customized ads.