ITL #246 Investor relations: juxtaposition of traditional and contemporary communications8 months ago
Traditional IR tools still have their place but it stands to reason that reaching out to investors must take into account the vast array of channels presently available. By Richard Tsang.
While investor relations has been in existence since time
With the world getting ever smaller due to advancements in technology, even time zones no longer matter. Investors are able to keep a closer eye on their investments, aided by computer software that provides monitoring 24/7.
As for companies starting their IPO communications exercises, while they previously had quite a bit of leeway in controlling what facts to deliver, nowadays many facts and information can readily be found via the Internet, hence the communication process of today is more concerned with clearing misunderstandings and guiding the direction of discussions. You would be hard-pressed to find uninformed potential investors anymore.
Still, in introducing a company to the market, whether name brand or unknown,
That said, we cannot forget that ultimately what we are responsible
Also, we must be able to look at the big picture on behalf of the client. Sometimes when an IPO is only targeted towards one market, and products are not sold outside its borders, an international roadshow should nonetheless be conducted as this would facilitate the establishment of a diverse shareholder base as well as possibly pave the way for selling products globally in the future, once they are known internationally by the investment communities.
Some of the most active
For us, we have always valued a highly tailored approach in respect of creating or deploying key messages. After all, IR professionals are not only communications experts, they are also professionals in related practices, such as accounting, law and stock broking, as well as possessing in-depth knowledge of many of the industries in which their clients operate.
In addition, the combining of forces among regional offices, all working together on one large deal, is increasingly important. It’s worth noting that sponsors sometimes also rely on local IR experts to provide market intelligence and connections to complement their own
Addressing possible imbalances
Naturally, different investors have different preferences for communications platforms. In China, where social communications
The increase in
While various market regulators are tightening the rules and regulations of their markets, including obtaining more information on individual investors, regulations governing other market stakeholders such as the media, commentators and people who choose to disseminate information on the Internet are still lagging behind. We as IR professionals have to constantly deal with misleading statements or false information that can inflict damage on companies.
Projecting investment trends
The positive side of such development is big data. By using data analytics, we are able to analyse and project investment trends, leading to the development of more effective programmes that suit the needs of investors, and by good planning and matching, avoid fluctuations and enhance valuations.
Currently, such technology and knowledge are used more in the consumer marketing programmes. IR professionals should consider investing more in this area.
Having completed some 380 IPO communication campaigns over the past two decades, we are vividly aware that investor relations
While investor presentations, stock commentator meetings, media luncheons, international roadshows and other traditional tools will continue to have their place, so too will the need for digital communications and its growing plethora of services. The shrewd deployment of tools past and present will no doubt be the determinant of an effective investor relations campaign, and indeed an effective investor relations agency.
Richard Tsang, Chairman, Strategic Public Relations Group.mail the author
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