how feedback, targeting and high-IMPACT events can fuel your valuation
In Asia’s dynamic capital markets, the challenge for listed companies is clear: how to enhance valuation and ensure the right story resonates with the right investors. High ownership concentration, regional shareholder dominance and fragmented analyst coverage mean that earning the attention – and conviction – of global investors requires more than traditional broker-driven outreach or routine disclosures. What’s needed is an integrated approach built around three collar pillars: independent investor feedback, rigorous investor targeting and high-impact capital markets events.
Pillar one: independent investor perception – listening directly to the market
At the heart of impactful IR is a deep understanding of how investors perceive a company’s equity story. Yet many Asian companies still rely heavily on broker feedback, rather than seeking independent investor perspectives. This reliance can create blind spots around broader market sentiment and investor priorities. With analyst coverage often limited – particularly for mid-cap names – direct investor engagement and timely feedback have become even more important for maintaining market visibility and understanding investor priorities.
Recent perception studies conducted by FGS Global underline what investors value most: over 68 percent of investors want more granular disclosure on strategy, growth opportunities and revenue drivers to assess future upside. Some 69 percent are seeking more detailed and forward-looking guidance to support confidence in a company’s outlook and execution, while 71 percent emphasize the need for clear and consistent capital allocation policies to reinforce long-term confidence.
‘They need to showcase their competitive strengths e.g., their pros and cons versus peers, more colour on their plan for product X and its growth potential, and their strategy for product Y.‘
Direct quotes from perception study interviews
‘Their peers are more forthcoming around units and orders, and if you don’t give more colour, you’re leaving the market open for more speculation and volatility.‘
‘Capital allocation is not clear. I think they could be clearer on M&A and do a better job in explaining where they anticipate investments to be made…what is maintenance versus growth capex.‘
‘They guide nicely but without much longer-term visibility. We’d love to see more aspirational targets around TAM, market share, etc. but these have to be the numbers you don’t think you will need to revise.‘
Moreover, independent investor perception studies provide IR teams with an unfiltered view of what investors are really thinking – highlighting which parts of the equity story land well, where confusion exists and identifying practical steps to strengthen engagement and address market realities. Companies that have acted on these findings have seen tangible results: an Asian conglomerate strengthened its market standing by implementing actionable recommendations, including improved disclosure, clearer communication of segment growth drivers and an updated capital allocation narrative.
Pillar two: strategic investor targeting – connecting with the right capital
Investor relations today is about more than routine disclosure and engagement with a company’s largest shareholders – it also means actively building relationships with new investors who are aligned with and can support a company’s long-term vision. In Asia, this presents a distinct challenge, as institutional ownership of equities remains notably lower than in Western markets, reflecting lower foreign investor participation. According to the OECD, only 18 percent of Asia’s public equity market capitalization is held by institutional investors, compared to 47 percent globally, 38 percent in Europe and 69 percent in the US. In leading financial centers such as Hong Kong and Singapore, foreign ownership is below 20 percent.
That leaves considerable untapped global pools of capital. Through systematic quantitative and qualitative analysis, companies can understand which global and regional institutions are investing in the sector and their direct peers. By combining this with real time market intelligence on global investors, IR leaders can map the right targets, prioritize outreach and diversify their shareholder base with long-term supportive capital.
Recent results show the impact. A Hong Kong listed company segmented 55 priority investors, attracting new foreign interest and reinforcing existing relationships. An Asian conglomerate developed a more balanced and resilient register by identifying 93 potential institutional targets, with European institutions among the new additions.
Pillar three: capital markets day – from vision to re-rating catalyst
A capital markets day (CMD), when thoughtfully executed, can reset investor expectations, build conviction, and catalyze a share price re-rating. According to FGS Global research, over 80 percent of investors seek more proactive engagement, especially through CMDs that provide substantive updates on strategy, financials or growth plans. While CMDs are standard practice for US-listed firms, they remain underutilized in Hong Kong and across Asia – and so represent a clear opportunity for regional issuers to stand out.
The most effective CMDs go beyond informing investors – they build credibility, shape perception and lay the groundwork for future engagement. To maximize impact:
- Show clear execution of strategy linked to financial results. Even the most compelling vision will not resonate unless it’s tied to a financial plan that delivers on profitability, returns and cash flow.
- Prioritize capital allocation transparency. A well-run CMD helps investors understand how organic growth, M&A and shareholder returns fit together. Use the event to articulate your capital allocation framework and how it drives financial and strategic objectives.
Well-executed CMDs have been shown to enhance investor perception and drive sustained shareholder value. Among STOXX 600 companies, those that held at least one CMD in the past three years saw a 20 percent higher P/E multiple and a 7 percent share price increase within a year. However, underwhelming events that lack substance can erode market confidence.
‘This CMD was so much clearer in terms of the way they were managing the business – a more hands-on, tighter grip on execution.’
Post-event feedback from an investor
The message is clear: transparent vision, credible strategy, and substantiated financials attract market premium. Recent examples underscore the impact – such as a Singaporean company whose 2024 strategy day after a transformative acquisition resulted in a 30 percent share price increase and a Southeast Asian energy company whose CMD delivered a refreshed narrative and double-digit gains by drawing new global investors onto the register.
Bringing it all together
Combining these three pillars is what can help set leading companies apart. Independent market feedback sharpens the narrative and keeps IR teams aligned with evolving priorities. Rigorous targeting connects companies with long-term capital, while high-impact CMDs turn strategic ambition into action and signal value-creating intent.
As Asia’s companies compete for attention – and premium – in global capital markets, those that focus on clear messaging, targeted investor engagement and strong follow-through will be well positioned to build lasting relationships and enhance valuation. The most effective IR leaders today aren’t just keeping investors informed – they’re building conviction and setting the pace for growth.
Harry Florry is partner, Hong Kong and Southeast Asia and Kirsten Molyneux is partner, head of capital markets and investor advisory, Asia at FGS Global.
