Ann: Substantial Holding Notification, page-7

The company has to deliver or none of this will matter.

A broadening of the register will create more turnover. That’s a good thing because most professional fund managers will have a turnover hurdle relative to their fund size that must be met before they can invest in it. This ratio will also then determine maximum position size. Higher turnover means higher position potentially. Big positions relative to turnover is a massive risk red flag that asset consultants look for.

Secondly, the broader the investor base the more the stock will be talked about. Broker coverage is important but their insto clients have to be interested to generate the discussion. All the professionals know when a stock their competitors own starts to run. FOMO is real at the big end of town. The performance tables are published monthly and everyone knows who’s doing well and vice versa.

Thirdly, a broader register makes CRs easier. The roadshow will go to holders only, they know the story, they’re making money and will back management on the next leg.

This is exactly the path that Afterpay went on. I went to one insto roadshow briefing that was packed to the rafters and streamed all around the world. The most common question to management? “Please raise more!”