On Average, an s708 Contributes $54,000 to a Company Placement
Placements (also known as a "prospectus exempt" raising") allow companies to issue shares to sophisticated investors (s708), without the need for a full prospectus. These types of capital raises are only available to s708's as they're considered 'higher risk' than traditional public offerings due to a lesser degree of regulatory oversight.
Recent data from InvestorHub from dozens of issuers demonstrates that, on average, an s708 contributes $54,000 to a company placement. We also have the data to support that, on average, 7% of your company registry are HNW investors, and thus potential s708s.
This raises an important question for companies, and the effort they undertake to discover and engage their shareholders, especially their s708s. What are you doing right now to find your s708s that exist in your company registry? Do you know who they are?
Do they know who you are?
For example, Company A is looking to raise $1,000,000 via a placement. A single s708, on average, represents more than 5% of the entire funding goal. If Company A has 1000 shareholders, data suggests that 70 of those are potential s708s. That's $3,780,000 in estimated placement demand, available internally within the registry for Company A. And that's just a very simple example.
With this data in mind, how will you find your s708s? What are you going to do, now that you understand knowing your s708s is vital towards efficient capital raising outcomes? Check out InvestorHub if you want to leverage the inherent demand available within your existing shareholder base, and engage the investors who are best aligned to act in the long-term interest of the company.
- Maximise the likelihood of investors participating in your SPP
- Why investor emails are so important
- Learn how different investor demographics behave post-placement
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