Bouncing back from a pandemic-led slowdown, the economy has gained momentum for initial public offering (IPO) companies in 2021. The stock market will remain busy during 2022 with more IPOs. As many as 38 IPOs are waiting for the nod of the Securities and Exchange Board of India (SEBI), and 36 are under its observation. With increasing participation in the IPO pipeline, companies need to stand out differently before going public. Here is the need for a powerful brand story in the first-rate prospectus to convey the uniqueness of your business model.
Importance of brand story for successful IPO
Your brand story is an excellent opportunity to create a connection with potential investors and make them understand your company’s identity. It has become an essential tool to provide context for situations that may otherwise be clouded for the world. An effective brand story is important for an IPO in the following ways:
- Stand out in the crowded market.
To differentiate in a crowded market of upcoming IPOs, a company needs a powerful and persuasive brand story. It can make it stand out in a crowded IPO market. You can maximize engagement with a diverse mix of content in the brand story.
- Answer to Why should I invest?
Institutional investors also conduct research, but they prefer to rely on the information presented in the prospectus and at roadshow meetings than visiting the company’s website. Your brand story is an opportunity to turn potential investors into your company’s investors. It should answer the investor’s question ‘why should I invest?’ in the simplest way possible.
Make sure to spend time understanding how your brand will be considered against relative companies in the industry. It is a necessary step in a brand story. More time spent can really help educate investors and research analysts about your brand to go forward. It is not wrong to say that IPOs are not just purely financial affairs, but they are also among major reputational events. A company’s valuation is linked to the company’s reputation that the consistent brand story can enhance. Communication is central in an IPO also.
- Convey key skills and growth of entrepreneurs
While designing a well-branded IPO prospectus, the brand story needs to be inclusive to increase the possibility of securing capital. Within a prospectus, you should link the company’s journey, key skills, and growth of the entrepreneurs to a broader narrative. Let the retail investors open trading account online to trade your stock passionately.
Conveying entrepreneur skills and growth journey makes it much simpler for investors to recognize the opportunity for further expansion of the company. You can package up all the facts of your journey into a no-frills yet cohesive story that shows your company’s uniqueness and the chronological progression from day one to the present day.
- Maximize the valuation at IPO
Telling the company’s story can maximize its valuation at IPO as well as the complementary price appreciation when the stock starts to trade in the market. Your brand story is an opportunity to illustrate how well your company is positioned in the market. Even if your company holds a high public profile, you need a well-focused brand story to raise debt in the primary market. With an extremely compelling narrative and clear prospects of your business, you can set the tone for all further market dealings.
Thus, communicating with potential investors has become even more critical. The three Cs of a brand story are crisp, compelling, and comprehensible. It will help to increase investment opportunities by bringing competitive attention. Your brand story can exhibit certain financial characteristics as well. A well-told story can go a long way.