C2 Capital

Roadshow and ownership widening

When should you as a company start informing the market?

Roadshow and ownership widening

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

Published 14 January 2020
To homepage

© 2020 C2 Capital Management Ltd | 11516204 Registered in England and Wales. No.  | Privacy Policy
Phone: +44 (0)20 36 08 01 08
twitter  facebook