WeBuyCars (WBC) listed on the JSE on 11 April 2024 and recently celebrated 120 days since its initial public offering. CEO, Faan van der Walt reflects on what has changed within the organisation. As the company prepares for its first financial year as a listed entity, he is optimistic about the future and looks forward to sharing the company’s results.

"Prior to our listing, as a subsidiary of a listed company, we operated under the rigorous compliance and reporting standards of a listed company for several years before the IPO, which prepared us for our own listing. In many ways, our IPO has been a relief, enabling streamlining of processes and allowing us to take direct control over our reporting and board meetings."

This growth strategy balances volume and profit margin, with a focus on scaling operations. "We prioritise volume, even if it means a slight sacrifice in margin, because this leads to long-term loyalty. A significant portion of our business comes from repeat customers and referrals.”

This dichotomy illustrates how it can be a challenge to navigate the complexities of communication as a publicly traded company. "For instance, it’s sometimes tough to balance the enthusiasm we are accustomed to expressing with the restrictions of what information can now be publicly revealed. We must adhere to strict reporting guidelines, which means we can only discuss historical data and avoid revealing details about recent developments or future plans."

Van der Walt also credits the strategic decision of Johan Holtzhausen from PSG to price shares affordably, around R20 to R25, which made them accessible to a broader range of investors. "There’s certainly a method to the pricing strategy."

A significant part of the CEO’s experience in the listing process has been engaging directly with investors. "Going on an investor roadshow and meeting with such knowledgeable and inquisitive individuals has been a highlight. The level of detail and the insightful questions from investors was impressive.”

"Most institutional investors are highly experienced and their decision to invest in WeBuyCars reflects confidence in our business model and growth potential. Their feedback is incredibly valuable; it helps us view our company from a different perspective and guides us in strategic directions, with key topics of discussion with investors having included expansion strategies, digitalisation, and the future of vehicle ownership.”

Initially, a separate listing wasn’t on WeBuyCars’ radar. The impetus for listing arose when management recognised that the value of WeBuyCars was not accurately reflected in the share price of its former holding company, and a separate listing became a logical step.

As to how the listing has influenced relationships with various stakeholders, including suppliers, customers, and financial institutions, he says they have been mostly positive, reflecting greater perceptions of stability and gravitas.

"Being a listed entity certainly enhances our standing. We are taken more seriously and hold more bargaining power, especially when negotiating leases or entering new markets. The respect and credibility associated with being publicly traded provide us with a stronger position in these negotiations.”

As always, cybersecurity is top of mind. “Our approach includes using the latest technologies and ensuring that our data is stored in multiple, secure locations to mitigate the risk of compromise."

The key was a strategic investment made two years ago in Agile Bridge, a software development company. "Agile Bridge helps us access top-tier developers and technicians, which is crucial given the competitive landscape for tech talent. Their focus on attracting young talent through bursaries and internships addresses one of the biggest challenges in the tech industry—retaining skilled staff.

With around 140 developers in their team and our own internal team of developers, we manage everything internally from system maintenance to new development and user experience testing. Our hybrid tech team continuously implements small, iterative improvements to our platforms, such as tweaking website elements and testing user interaction to optimise performance,” adds Van der Walt.

Van der Walt and the WeBuyCars executive team are confident that the first months of operating as a listed entity are setting a strong foundation for continued growth.