Investor Relations: A Vital Link for Businesses Seeking Capital
Investor relations (IR) play a crucial role in helping investors understand a business, especially during the initial public offering (IPO) stage when a company first enters the stock market.
 Ms. Nguyen Thi Thuy Duong, Director of Investment Banking, Yuanta Securities Vietnam
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Ms. Nguyen Thi Thuy Duong, Director of Investment Banking at Yuanta Securities Vietnam, emphasizes the importance of IR activities for IPOs and listings. This is a critical period for a company as it transforms from a private to a public entity and must comply with disclosure obligations under securities laws.
Prior to an IPO or listing, IR activities include organizing roadshows to introduce the company and investment opportunities, site visits, and comprehensive disclosure of business and financial information on the company’s website and through mass media.
Effective IR at this stage ensures that investors have access to a company’s historical and future business plans, leadership capabilities, and other vital information to make informed investment decisions regarding the IPO.
Post-listing, maintaining efficient IR attracts the interest of institutional and individual investors, leading to improved liquidity for the company’s shares compared to peers in the same industry that may not engage in regular IR.
Moreover, as companies often seek additional capital post-listing, consistent IR ensures that investors are well-informed, potentially shortening the investment decision-making process and expediting capital raising efforts.
In the past 3-4 years, the IPO market in Vietnam has been subdued due to unfavorable market conditions, modest or declining business performance, and stricter approval processes for IPOs/listings by government agencies.
To adapt to the current market conditions, Yuanta Vietnam’s investment banking division focuses on private placements for listed and private companies, according to Ms. Duong.
Looking ahead, with the anticipated upgrade of Vietnam’s stock market, there are hopes that government agencies will once again approve IPOs/listings for foreign-invested enterprises.
In line with this, Yuanta’s investment banking division aims to specialize in IPO/listing advisory services for businesses, particularly Taiwanese companies operating in Vietnam.
Ms. Duong reveals that numerous Taiwanese businesses have inquired about the IPO/listing processes in Vietnam. Yuanta Securities has been guiding them to prepare for meeting the necessary conditions, so they are ready when the regulations allow them to list in Vietnam again.
A key strength of Yuanta Securities Vietnam is its connection to its parent company in Taiwan and other subsidiaries within the Yuanta group in South Korea, Thailand, and Indonesia, which also have strong investment banking divisions. In Taiwan, Yuanta Securities is the market leader in brokerage and investment banking, significantly contributing to the company’s growth.
For instance, in M&A transactions requiring foreign strategic investors, Yuanta can collaborate with its group companies to find suitable investors. “The ability of our colleagues in other countries to communicate with potential investors in their native language is also an advantage,” Ms. Duong shares.
Additionally, Yuanta’s ecosystem includes venture capital and private equity funds in South Korea, Hong Kong, and Taiwan, focusing on start-ups and private companies with high growth potential. Yuanta can introduce attractive investment opportunities from Vietnamese companies to these funds, potentially facilitating cross-border transactions.
