Singapore equities market rebound fuels demand for investor relations

[SINGAPORE] Investor relations (IR) agencies are looking to expand their teams amid growing demand for their services, with an eye on specialised skill sets. This is as initial public offering (IPO) momentum picks up, alongside a rise in capital-raising activity and improving market conditions.

“To meet this rising demand and the increasing complexity of client needs, we have entered a strategic growth phase,” Gem Comm chief executive officer Emily Choo told The Business Times.

The investor and public relations firm has increased its headcount in client-facing and strategic advisory roles by around 20 per cent over the past 12 months. Earlier this year, it advised on two Catalist IPOs – those of Dezign Format and Lum Chang Creations .

Financial PR is following a similar trend. Its managing director Kamal Samuel said the firm plans to expand its headcount by 15 to 20 per cent. “Things are looking a lot more positive,” he noted, citing stronger market sentiment and a growing pipeline of deals.

Still, some sector players do not intend to hire immediately.

Alan Lee, managing partner at August Consulting, said that while his firm is not actively recruiting, it is open to future expansion. It recently worked on Info-Tech Systems ’ mainboard listing.

He told BT that the current team is adequately resourced to handle both existing clients and new mandates. “We could potentially look at hiring additional staff next year to support new mandates and deepen sector expertise.”

Another IR consultant, who declined to be named, echoed the view. “We are not looking to expand our team and have only hired a couple of fresh grads this year – this is in line with previous years,” he said.

However, it is not just about the number of staff. Capabilities are equally important, Choo pointed out.

“The role of an IR professional has evolved far beyond press releases and logistics,” she said, adding that the specific skill sets her firm is looking for reflect this shift. These include deep financial acumen; strategic environmental, social and governance (ESG) advisory; digital marketing; and data analytics.

“We need professionals who can dissect a balance sheet, build a valuation model, and debate the nuances of a company’s financial strategy with seasoned analysts,” she added.

Likewise, Samuel highlighted the importance of core competencies. “Financial knowledge is key. I always look out for that. Interpersonal and writing skills are also very important, because ultimately, we have to talk to people and convince them.”

Lee echoed these priorities, noting that as August Consulting focuses more on financial communications, it seeks professionals with experience in digital and social media, ESG reporting, crisis communications and investor-facing engagements.

Choo’s firm is also hiring talent with prior experience in the small-to-mid-cap sector. She said: “To maintain credibility, we must demonstrate fluency in our clients’ sector terminology and market dynamics.”

Growing demand

IR professionals also noted that initiatives spearheaded by the Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) – particularly the Equity Market Development Programme – have acted as significant catalysts, reshaping market sentiment and activity across the board.

“The pick-up in IPOs, together with SGX and MAS initiatives to boost liquidity and research coverage, has re-energised market sentiment,” said Lee.

He highlighted a growing willingness among investors to consider companies beyond large-caps, provided these firms demonstrate clear growth prospects and strong governance.

Investor interest has clearly strengthened in recent months, said Ong Hwee Li, CEO of investment banking firm SAC Capital. “The strong first-day performances of recent IPOs show that demand is robust, and many investors who missed out are now looking forward to more successful listings of good-quality companies.”

From the perspective of IR firms, this evolving landscape has prompted a noticeable shift in corporate attitudes.

“Companies that previously hesitated over the high costs of an IPO and the challenge of securing investor attention post-listing now see a viable and attractive path to the public markets,” said Choo.

Indeed, more companies are reaching out to IR agencies. She estimated a 30 to 40 per cent increase in inbound requests from small and mid-cap companies looking to strengthen their post-listing IR programmes.

Samuel noted that while such inquiries have surged significantly of late, the momentum has been building for more than a year as the market heated up. Clients who had previously stepped away due to disappointing valuations or lack of market recognition are returning, seeking ways to attract the right investors and gain sell-side coverage, he said.

“Funds I hadn’t met for five to six years are reaching out, saying they know some of our companies are undervalued and want to start discussions,” he added.

In line with this, he has noted an uptick in the number of companies his firm is taking on board. “There are also spin-offs from our current group of clients, like Centurion and Yangzijiang Financial , so there is a lot of excitement in the market.”

He also highlighted that there is no sector concentration, with companies coming from diverse industries – from technology, manufacturing, maritime and financial services to real estate and construction.

However, Choo noted that sector activity is most pronounced in oil and gas, followed by offshore and marine, and then consumer companies, which include both consumer discretionary and staples.

Looking ahead, Ong emphasised that demand for IR services is expected to “increase in tandem with new listings and greater IR activities, supported by capital-raising momentum and improving market conditions”.

However, not all industry players have observed this uptick. An IR consultant who wanted to remain anonymous said that he has not seen a rise in inbound queries, which could be attributed to limited marketing efforts.

He suggested that “it’s still too early to tell whether there will be more investor interest because of the new measures”.