Edison Group, an international research and investor relations consultancy, has partnered with highly-regarded South African equity research company Austin Lawrence Gidon (ALG).
The partnership’s mission is to transform South African corporates’ access to international capital markets - and then repeat the success in neighbouring markets.
ALG is one of the leading equity research houses in Africa, backed by a team of six analysts with over 100 years of combined experience writing high-quality, independent, and innovative research on listed companies. The firm offers its clients increased visibility through market leading research distributed globally as well as investor roadshows. It also provides unique insight to shareholders through thematic thought pieces and the wider distribution of research to non-holders and new entrants to Emerging Markets investing.
This new partnership will leverage Edison’s international reach and reputation to refocus investor interest onto South African stocks. Local managers in emerging markets, particularly following the downsizing of traditional brokerages, tend to be a captive audience. The real potential to increase interest in South Africa, and then other African markets, comes from attracting more regional and global EM managers to these markets. To deliver this increase, ALG and Edison agreed what is needed: internationally-prestigious equity research and global research distribution across all major financial platforms (including Bloomberg and Refinitiv), leading to an improved flow of insight to hundreds of thousands of investors, sparking thousands of new, active and informed dialogues.
The current environment has only made this more urgent for all market participants - South African companies and global investors alike.
Edison will facilitate this outcome by adding its market-leading investor relations capability to ALG’s high-quality research. Edison has digitalised the process of finding, informing, and introducing investors to its clients. After distributing its research reports, Edison’s digital platform monitors the behaviours of tens of thousands of investors using smart targeting, with algorithms identifying interest – and even intent – to buy particular stocks.
These ‘propensity to purchase’ signals are detected via Edison’s digital content tracking system that notes the investors who have accessed research reports and other web pages. Virtual roadshows and video client consultations are then arranged so that investors can be told the full client equity story.
This strategic partnership follows Edison´s recent launch of an office in Amsterdam covering the Benelux region – which has already signed its first client in automotive retailer Stern Auto BV – and Edison Atlantic, a new digital offering to help European and UK companies source funding in the US, the market with the deepest and broadest pool of capital in the world.
Edison continues to leverage its successful digital business model to help more companies around the world secure access to the capital they need. In the last three months Edison has been appointed by 16 listed companies, bringing its portfolio to more than 400. New clients include significant names such as Newmont Corporation, the world’s largest gold mining company, as well as Applied Graphene Materials, Allianz Technology Trust and Stern.
Fraser Thorne, Founder and CEO of Edison Group, says: “As a leading investment advisory and research firm, we are always looking to capitalise on opportunities to deploy our services to help boost investor interest in the businesses that we serve. Partnering with ALG is a great example of how we can adapt our market-leading IR and research capabilities to support the firm’s high-quality research and help companies access the broadest pools of capital.”
Marius Strydom, CEO at ALG, says: “There are a wealth of innovative and successful companies in South Africa and across the Continent, and our collaboration with Edison will help them secure the funding and investor focus that they deserve. Independent sponsored research is a new concept in South Africa, it is growing fast and will improve investors’ understanding and appreciation of the quality of businesses in the market. Our partnership with Edison will attract a much broader range of regional and global emerging markets managers to African markets, which will not only benefit businesses but also the wider economies in which they are based.
“Whilst we now lead the market and fully intend to remain at the head of it, we are certain our success will attract many competitors. As this will further increase the visibility of South African companies on the global stage - and help attract more equity capital to our nation - we very look forward to welcoming other innovators into this space.”
ALG’s growing team of best of breed analysts includes René Hochreiter, Hennie Vermeulen, Andrew McNulty, Thobelani Maphumulo and Marius Strydom.
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