Attracting US investors for a successful IPO journey

How can Vietnamese companies overcome biases from US investors when seeking capital or planning an initial public offering (IPO)?

Overcoming biases from US investors is all about preparation, and it’s a process that needs to begin long before a company decides to go public. Early preparation is essential to build investor trust and ensure a successful IPO.

Teresa Woo, senior vice president at global financial services company BNY

One of the first steps is developing a strong foundation in investor relations and public engagement. This can be achieved by creating a transparent and effective communication strategy that covers not only financial disclosures but also engages investors through social media and other public channels.

Surprisingly, platforms like LinkedIn and Instagram can play a crucial role in gaining investor confidence by highlighting a company’s vision, progress, and leadership team. Companies also need to prioritise environmental, social, and governance (ESG) criteria well in advance.

Even if a company is still in its growth phase, it needs to appear IPO-ready by having a well-organised team and a clear ESG strategy. Timing the IPO perfectly is nearly impossible, as market conditions can change unpredictably. However, companies that are well-prepared can take advantage of favourable market conditions when they arise.

Much like planning for admission to a top university, the narrative a company tells investors has to be built over time. Companies should seek the advice of auditors, legal experts, and ESG advisors to ensure their preparation is thorough and credible. This support might be costly, but it is essential for success in a market as competitive as the US.

What practical steps can Vietnamese companies take to draw in US investors before going public?

While US investors are often focused on domestic markets, particularly in tech and AI, Vietnamese companies can still catch their attention. The key is to start building a presence in the US market early, even before raising capital or pursuing an IPO.

One effective way is through strategic exposure programmes that introduce the company to potential investors. For example, exchanges offer initiatives like “Floor Talk,” which involve short interviews where companies can discuss their industry, strategy, and vision. These interviews are then shared on platforms like LinkedIn, providing valuable exposure to US investors.

Even if an IPO isn’t planned in the immediate future, raising awareness about your company early on can have long-term benefits. Another practical step is considering physical investments in the US, such as opening a manufacturing plant or a showroom. This shows commitment to the US market and generates buzz among investors who may otherwise overlook international companies.

The takeaway is clear: Vietnamese companies can draw in US investor interest by consistently engaging and maintaining visibility in strategic ways.

Why is early preparation critical for success in the US market?

Early preparation is critical because the US market is incredibly competitive and timing is unpredictable. Companies that begin their planning years in advance, securing advice from financial and legal experts, are in a much better position to capitalise on market opportunities when they arise. While the road to an IPO may take longer than expected, often more than two years, those who invest the time and resources early are more likely to succeed.

As one expert said, “It’s like preparing for admission to a top university – you need to craft your narrative and get expert advice well ahead of time.” By doing so, Vietnamese companies can make their IPO dreams a reality, even in the demanding US market.

What role does ESG play in gaining investor confidence?

In the current market, ESG considerations are not just a nice-to-have as they are often essential. US investors, particularly those looking at international companies, are increasingly focused on how businesses address environmental and social responsibilities, as well as how they govern themselves.

Vietnamese companies looking to attract US capital should ensure they have a clear and transparent ESG strategy in place long before they consider going public. Investors want to know that the company is sustainable, ethical, and prepared to navigate regulatory and environmental challenges.

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