We published an article on what steps small-cap companies can take to target investors a while ago. Here is a follow-up article on why we recommend IROs consider having in-person NDR trips and traveling to global financial hubs when all travel restrictions are lifted.
The positive effect of prioritizing in-person meetings after a long hiatus will be more impactful than ever, especially when many people have grown weary of online meetings.
The first step to planning physical NDR meetings is to examine your shareholding list and find out your current ownership structure and the geographic breakdown of your institutional shareholders. It is essential to understand where most of your shareholders are located to determine the appropriate length of stay for each city you plan to visit. Embarking on in-person NDR trips can be highly time-consuming and costly; therefore, it would be wise to plan it well and do your homework beforehand.
Secondly, obtain the information of the attending representatives from the investment institutions. It is critical to know whom you will speak to before the meetings as this determines who might be the best person to lead the session on behalf of your company. Frequently IROs invite C-level to partake in NDR meetings, and to keep in mind their busy schedule, a basic knowledge of the topics that the attending investors are most interested in will help you know who’s the best presenter for the meeting. The attendees may already be familiar with the company, prefer to have a high-level chat with management on broader issues, or an investor that wants to meet in person to receive a general update on the company’s financials and operations in greater detail. Apply the knowledge you’ve gathered from past meetings with shareholders and investors to decide whether you need senior management to join the sessions.
Furthermore, NDR trips are also a great way to connect with potential investors aside from existing shareholders. By analyzing the makeup of your shareholding structure, IROs can decide which regions require additional investor targeting to increase the number of shareholders. We also recommend that IROs distribute all the latest IR materials to meeting attendees beforehand to ensure investors can do a thorough study. IROs can also share industry reports with investors that are new to the company to help them get up to speed in learning about the particular market.
Companies traditionally play a less active role in arranging roadshows; it is usually up to the brokerages to plan the NDR trip. However, in recent years we have begun to see more companies enlist third-party agencies to help them organize roadshows, especially abroad ones. The agencies work with companies to handle roadshow meeting logistics involving multiple cities and arrange additional meetings with investment institutions that the brokerages don’t have coverage on. The value of in-person meetings allows for networking activities, and it also provides valuable opportunities that encourage conversations and nurture relationships. Plus, it would be great to meet investors you brought on board during the pandemic times for the first time.
Author
Kevin Yang
CEO
