Why investors backed Wagners at company float

MANY investors were swayed into being part of the Wagners' float on the Australian Stock Exchange because of one specific reason, an investment analyst says.

The Wagner family at the ASX float in December.

MANY investors were swayed into being part of the Wagners' float on the Australian Stock Exchange because the company was willing to put the family name on the listing.

That's according to Melbourne-based investment analyst Stewart Oldfield, who has looked over the future opportunities and challenges facing the construction materials company since its float last month.

Mr Oldfield, who has more than a decade of experience in the financial sector and fronts his own business Field Research, said some investors he spoke to were impressed by the decision to attach the Wagner name to the float.

"They've lent their surname to the business - believe it or not, it was very important to the Sydney investors I spoke to," he said. 

"If they're putting their name on it, that means they want it to be a success."

The share price of Wagners Holding Company started trading today at $3.80, down from a high of $4 on December 22 but still way up from the initial offering of $2.71.

Mr Oldfield said investors were backing Wagners to exceed expectations as it moves further into the concreting market.

"They're betting on Wagners being able to punch above their weight and up against some international players that operate in the Queensland market," he said.

"They're backing the company to benefit from increased spending on infrastructure, with key rail projects.

"The Queensland Government have been shown to back home-grown companies that employ a lot of people.

"The infrastructure boom of the Campbell Newman Government hasn't returned, but there are some indications that infrastructure spending is ramping up."

Originally published as Why investors backed Wagners at company float