While some analysts have claimed the market is set for multi-digit gains this year, others are warning global economic challenges could cause the market to tip into the bear’s mouth.
So, at a time when a confluence of conflicting advice is causing investors to shy away from spending on stocks, how do companies looking to achieve capital growth make the market listen?
Key to this is face-to-face engagement, from in-person meetings to multi-day roadshows, allowing executives the chance to promote their story by pressing flesh with those who might be willing to invest.
A recent example of how successful this approach can be was played out by Mexican fast food giant Guzman y Gomez. The Australian Company has been one ray of ‘IPO’ light in 2024, with its value soaring past $3 billion after it debuted on the ASX in July.
The healthy fast-food chain is now officially going to make the S&P / ASX 200, an achievement that is testament to the face-to-face engagement and storytelling achieved during the IPO process: after all, you can’t receive free burritos over Microsoft Teams.
In the first six months of 2024, there have been 13 listings on the ASX with a total of $809.5 million raised. This is a 440% increase compared to the same time last year, according to advisory group HLB Mann Judd.
This data provides a strong foothold for other companies endeavouring to list in the second half of this year, with the share price performance of these listing, refer to GyG’s extraordinary surge of 36% on day one of trade, providing positivity around what’s possible.
In this edition of YIELD, we speak to one of the companies currently going through an IPO. Merino & Co is a homegrown, true-blue, Australian company delivering 100% Australian Merino wool clothing and accessories to domestic and international markets.
The Company has big growth plans, which is why it decided to list on the ASX this year. As the executive team has been selling its story, a vital component of attracting investors to Merino & Co’s unique proposition is conducting face-to-face meetings.
One of the major benefits for Merino & Co is the company is well established, having produced pure Merino products since 2013. This means their tried and tested product is ready and available to showcase to investors.
They get the opportunity to touch, feel, even smell the Merino wool apparel during in-person meetings and these sensations can make all the difference by creating buy-in to a product people can see in real-life.
When you’re looking to raise a certain amount of money: buy-in is critical.
The concept of in-person engagement is backed in by research, with a face-to-face request reported to be more than 30 times more effective than writing it in an email or another medium. A handy statistic if you’re wanting people to invest in your company.
Another reason why in-person engagement is so convincing is people get to witness the excitement and passion a Managing Director or CEO has for their company in real-life: a passion, which if delivered by a strong orator, can be contagious for anyone else in the room.
The temptation by companies to do quick and easy online meetings will always linger, a hangover from the COVID-19 pandemic when isolation rules altered how we operate.
But a face-to-face meeting allows a deeper, emotional connection to a story to be created with uniquely human traits and cues often lost in a virtual setting.
And at a time when investors are keeping a keen eye on the bull and bear wrestling match, providing human connection will be more important than ever before.