This morning Equity Story Group Limited (ASX: EQS) finally opened the book on a new story called trading on the ASX.

The company, which provides stock market advice, research, investor education and management services, delivered a successful IPO featuring strong support from sophisticated investors, and in particular, a long line of company clients.

EQS boasts a database of around 40,000 investors to whom they can promote new and relevant financial investor service offerings, leveraging on the growing obsession Australians have with the stock market, particularly from the younger ‘next generation’ of savvy investors.

CEO Trent McGraw says the IPO provides key capital to scale a grander Equity Story by expanding its already broad range of services and will help drive subscriptions and amp education growth through targeted marketing activities.

EQS is already initiating new revenue verticals, and is out exploring for complementary acquisitions and partnerships.

And talking of getting out there – total Aussie legend, unswerving (or totally swerving) pacemen and philanthropist Glenn McGrath has gladly taken up the role of EQS Ambassador, a thrill McGraw says the company intends to honour by donating a cut of its annual revenue to the McGrath Foundation – itself a great Aussie story.


Wholesale fund

EQS has established a retail feeder into a wholesale fund structure managed by Equity Story analyst Peter Kopetz. This structure provides future options for the company to roll out multiple funds and strategies, providing access to the underserved retail investor in the Funds Management space.

The pipeline of potential, yet to be implemented revenue verticals include – but aren’t limited to – execution brokerage and corporate finance/capital raising.

The business is currently working with a US partner to secure SEC ‘Investment Advisor’ licensing status.

This would enable EQS – subject to licensing approval – to provide its equities advice and education services in the US.

EQS hits the lists following the issue of 23,200,001 shares at an issue price of $0.20 per share, raising $4,640,000 before costs. CPS Capital acted as lead manager to the offer.

“Listing on the ASX is an important milestone for the company’s future progress and development,” McGraw said.


Back story

To date, the company’s marketing has been via a combination of limited online advertising spend as well as referrals and word-of-mouth recommendations following the success of the investment advice and strategies of the EQS investment team.

McGraw says the strategic initiative now lies in deploying capital to drive more aggressive marketing activities in order to increase the company’s subscriber base, thereby building annuity subscription revenues.

“Membership growth will also enable EQS to grow income from adjacent services such as investor education courses and funds management services.”

EQS will now also look to offer access to IPOs and other unique investment opportunities to members of their growing database. McGraw also intends to explore other adjacent services, as well as complementary acquisitions and partnerships.

“The company’s IPO will provide the opportunity to fulfill these growth ambitions as a financial media company,” he adds.

“But firstly, I’d like to thank the investors and clients who supported the company during our IPO process.

“It’s been nothing but great. And now, Equity Story is well positioned to execute on all of the growth initiatives we’ve been planning.”


This article was developed in collaboration with Equity Story Group, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.