Roadshow and ownership widening
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When should you as a company start
informing the market? What to write and
how to act on the market? The answer is
that most of the companies are just too
late informing potential shareholders
and the market about the image we show
of the company. In practice, one should
behave early as if one were listed and
thus watched. It takes a while before
the outside world discovers the company
and its benefits.
Customize the message
Prospective and existing shareholders,
analysts, journalists and groups are to be
convinced of the company's excellence. You
cannot treat all these groups as if they
were one and the same. The message must be
adapted and designed to meet the interests
of each interest group. Every company,
business and news must be turned and
turned on so that it gets the best
possible impact and interest in the
market. Identifying any possible
communication deficiencies at an early
stage can save the company considerable
costs and avoid losing values.
Shareholders most important resource
For smaller companies, Investor Relation
is to be designated as public relations to
the shareholders. It is the shareholders
who are the company's best resource when
the image of the company is to be built
and disseminated. Information to
shareholders is therefore essential for
small unlisted companies on their way to
listing.
The meeting is most important!
As owner / contractor in a smaller
unlisted company, we always recommend the
meeting! Investors want to meet with
management and ask questions to form an
idea of the company, the conditions for
developing the company to be a good
investment. Most investors seek
information on the company's website and
do not hesitate to call or email the
company to ask questions.
The road show is the test on the
company's management
How the CEO and management behave at
information meetings is the ultimate test
of the company's management. Management
does not believe that their role is as
important as it is in fact when an
investor decides whether or not to invest
their money. At least 50 percent depends
on the impression the company's management
and CEO convey. We always have a moderator
at the presentations who asks questions to
the management. Questions we know
investors want answers to. These may be
difficult questions, but they must be
asked. If there are any ambiguities or
questions that you do not get answers to,
then you refrain from investing.
Ownership widening before listing
The company must have many shareholders in
order to get a lively share trading. We
recommend between 1-2,000 people /
companies. Otherwise, the stock is still
standing and then the value of
automaticity drops. We have a model where
at least 1,000 people receive a small
amount of shares from the principal owner
prior to the PRE-IPO or IPO. In addition,
at least 300 persons / companies must own
shares in the company for at least € 500
each. This is done with the help of a
PRE-PO with a lower value of the share
before the IPO. We have a system for
distribution of ownership in the country
to which the company's share is to be
listed and opportunities for the country
where the main business of the company is
conducted.
What does an IR plan contain?
An IR plan should clarify a company's
business concept and provide a
strength-weakness analysis from a
communication perspective. This must be
addressed and implemented on the company's
website and must be taken into account in
all communications that occur from the
company. After determining which target
groups to target in the first place and
after the message is well, just start the
action list of activities.
What activities work best?
It can be newsletters, seminars,
conferences, etc. The company needs a
bulletin board to set up a sensible IR
plan to be followed. A small company can
always start training with a CEO letter
that goes out to the shareholders once a
month that tells what happens within the
market the company operates and what the
company has produced and done. It must not
be a blog without a sensible disseminator.
Continuous information
As an unlisted company, the focus should
be on continuous information to the
shareholders. This pays off, because trust
is created whether positive or negative
information is conveyed. Many business
leaders believe that only positive news
should be presented. This does not become
credible unless all type of information is
conveyed.
What instruments does the company
have against the market?
In fact, the company has a whole host of
opportunities to influence the market.
Classic aids are newsletters that go out
periodically. The website is a cornerstone
today. Seminars and conferences are
underestimated. Many investors form a
decisive view of the company and its
management at the meeting with the same. A
RoadShow where investors meet the
company's management is unbeatable. A
competent CEO and other management can
raise the capital they want from the
market, provided a healthy business
concept and a reasonable forecast.
Good CEO / entrepreneur surpasses the
business concept
In the choice between a half-good business
idea but with a very competent CEO and
entrepreneur compared to a half-good CEO
with a business concept that is great, a
competent investor always chooses the CEO
who is more convincing. A company has both
its ups and downs and a good lumber is
needed to cope with future problems. The
CEO and management must be good
communicators, otherwise the risk is
obvious that the investment market does
not like the company.
Jan Rejdnell
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Published 14 January 2020
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