The high initial trading volume following an IPO listing is an anomaly in the aftermarket and this activity is mainly caused by the flipping activity of flippers. Therefore, this study argues that investors' interest could be one of the factors that trigger flipping activity. This study uses the signalling theory argument, whereby the proportion of shareholder retention sends a credible signal to investors and sways flipping activity. Using cross section and quantile regression in high and median quintiles, this study found a significant positive relationship between shareholder retention and flipping activity. The finding suggests that to increase the liquidity of the IPOs in the immediate aftermarket, the shareholders have to retain a higher proportion of shares in order to signal the quality and prospects of the IPOs.