The unlisted share market works differently from public markets. Prices are not visible every day, and trades happen only when buyers and sellers come together. Understanding what drives demand and supply can help investors make better decisions.
Investor confidence shapes demand
One of the main drivers of demand is trust in the company’s business and long-term prospects. Positive developments—like new projects, revenue growth, or potential IPO plans—can create interest even before any returns are realized. Investors are often willing to pay more for shares they believe will gain value over time.
Liquidity affects supply
Supply is influenced by how many shareholders are ready to sell. If very few want to exit, prices tend to hold steady. When more shareholders try to sell, supply increases, and prices can drop. Limited liquidity makes unlisted markets more sensitive to small trades.
Corporate actions and regulation
Announcements such as mergers, IPO plans, or bonus issues can influence both demand and supply. Clear governance and regulatory updates help build confidence, while uncertainty can slow trading activity.
Price discovery is private and negotiated
Unlike listed markets, unlisted share prices are set through negotiation. Each deal acts as a reference point, not a fixed market price. Valuation often reflects expectations and sentiment rather than only current performance.
Key factors investors watch
- Company fundamentals and growth prospects
- Availability of shares and willingness of others to sell
- Regulatory updates and governance signals
- Market sentiment and recent private transactions
Overall, the unlisted market moves cautiously and at its own pace. Understanding the forces behind demand and supply helps investors navigate it patiently and make informed decisions.
What do you think drives unlisted share prices more—company fundamentals or market sentiment?
