IR Monitor – 3 December 2025

In this week’s newsletter:

• Making IPOs great again has its pitfalls. The US needs more public listings, in the opinion of the Financial Times, but the regulatory pendulum may be swinging too far  
• Meme stock traders are growing up, suggests Bloomberg. Retail traders now account for over 20% of US equity trading volume, and this is reshaping the way markets function 
• A lack of access to research on smaller companies for investors has created “a vacuum filled by bulletin board users”: the LSE has raised concerns with the FCA 
• Everyone in senior management sings the praises of AI and in recent earnings calls, nearly two-thirds of executives in the S&P 500 mentioned AI. However, the people actually responsible for implementing AI may not be so forward-thinking 
• IR Impact with some lessons on engaging Middle Eastern investors 
• And finally … the one-upmanship driving CEOs. While bosses talk about customers, employees and investors, the audience they’re most anxious to impress is each other

This week’s news

Making IPOs great again has pitfalls

Over-regulation is tainting the potential of US exchanges, argued Paul Atkins, chair of the US Securities and Exchange Commission (SEC), who is undertaking a campaign to “make IPOs great again”.  The SEC’s recent actions reflect a broader swing back in regulatory enforcement, in a bid to boost the attractiveness of going public. Since President Trump re-assumed office, enforcement actions are at a record low, and quarterly reporting obligations have been relaxed as part of the SEC’s deregulatory stance. However, if the regulatory pendulum swings too far in the opposite direction, the Financial Times warns, then risks may invite future failures. 2001 and 2008 are prime examples of when such “go-go” moments turned into crises. By maintaining well-kept practices, with a clear role for corporate governance, there is a measured way that poor behaviours can be identified and appropriately challenged.  

Meme stock traders are growing up

Five years on from the first meme stock frenzy, retail investors now have more of a solid foothold in the market, accounting for 20% of US equity trading volume. This is changing market functions in several ways, reports Bloomberg, with more trades happening outside of official market hours and hyped IPOs being leapt upon more vigorously. This was seen with Figma and Circle Internet Group, both of which saw a doubling in share price on the first day of trading. Beyond equities, Blackstone and Blue Owl Capital have said that a large chunk of their assets under management are now sourced from retail wealth. Additionally, some fund managers like Larry Fink and Bill Ackman have been pivoting their messaging towards retail investors. However, the situation is not a closed outcome, with retail net purchases falling to their lowest level this year, and leveraged equity ETFs, a favourite of this breed of investor, seeing net redemptions since September. The institutional buyside still constitutes 30% of stock market activity, a dominant force, but keep an eye out for how the pendulum swings.  

Vacuum filled by bulletin board users

The torrent of abuse and vitriol that can be found on forums, bulletin boards and social media has been cited as a disincentive for companies looking to float on the AIM market. The Times reports that the LSE and the FCA are communicating over concerns about the effects of such behaviour following a discussion paper on “shaping the future of AIM”. The exchange cited “a vacuum filled by bulletin board users” caused by a dearth of equity research in this space. Beyond insults and hostility, the potential for misinformation that could be market moving is also high and equally as problematic. With only 17 new AIM listings this year, down from 519 in 2005, the LSE is encouraging companies to report and refer cases of abuse in an effort to “encourage a founder friendly environment”. Due to the anonymous nature of many users, it remains to be seen how successful efforts will be. 

Investors might well expect AI use to soar but that’s not happening

With an expected $5 trillion to be invested in AI infrastructure by 2030, businesses are fully aware that the disruptive technology is here to stay. Wide-spread adoption is taking form in both personal and professional settings. However, evidence suggests that growth in corporate implementation is plateauing. Ramp, a fintech firm, reports that AI use within American firms peaked at 40%, in early 2025, before flattening out. The Economist highlights several factors behind a seeming market hesitation towards the technology. First, investors remain unsure whether AI initiatives are translating into tangible improvements in profitability. Second, the short-term disruption and adjustment costs linked with the integration of AI may be depressing productivity. Third, resistance to the temporary effects of the technology, particularly among middle management, combined with uncertainty over whether AI could ultimately replace workers, may be holding back a more forward-looking approach to its implementation: While senior leadership champions AI adoption, with 87% using it for their job, only 27% of employees do. 

IR Impact with some lessons on engaging Middle Eastern investors

The Middle East presents a window of opportunity for IROs seeking new avenues for capital. For IROs approaching the Middle East for the first time, writes IR Impact, engaging effectively hinges on guidance from senior-level leadership, who understand the cultural and communication nuances that shape investment decisions. Time investment is critical and IROs should expect a longer engagement process: in practice, IROs should expect to engage with investors five to eight times before a major allocation materialises. Middle Eastern investors also tend to prioritise strong dividend payouts and strategic alignment with national priorities, creating a higher barrier to entry. This sentiment derives from the companies they are familiar with, so research is crucial. Furthermore, disagreement is sometimes harder to notice and combat, so attentiveness is important. In summary, an awareness of the key decision-makers on the investor side and the patience to formulate bespoke strategy can lead to success. 

And finally … one-upmanship driving CEOs

The competitive nature of executives at the pinnacle of business was seen starkly as Bernard Arnault trumped Henri Pinault’s €100m donation to the rebuilding of Notre Dame with a figure double the size. Whilst employees, investors and customers are more often on the lips of CEOs, often it is their peers they are most eager to impress, notes the FT. This is more obvious in public markets, where a primary motivation is to outdo the performance of other bosses in their sector. This also continues behind closed doors, at roundtables, dinners and marquee events like the World Economic Forum. Here, share prices and titles lose value, and factors like personal compensation become more important. However, comparison does not always lead to more discontent. Benchmarking and reflection can show issues more clearly and improve strategy. Perhaps CEOs need to take the toxicity out of comparison and take inspiration from peers.