IPO Communications and Investor Relations - PwC · IPO Communications and Investor Relations The...
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IPO Communications and Investor Relations The PBN Company 26 April 2011
Transcript of IPO Communications and Investor Relations - PwC · IPO Communications and Investor Relations The...
IPO Communicationsand Investor Relations
The PBN Company
26 April 2011
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PBN at a Glance
Offering: International Strategic Communications Consultancy
Offices: Almaty, Kyiv, Moscow, Washington DC
Affiliates: London, New York, Hong Kong
Services: Financial CommunicationsCorporate & Crisis Communications Government Relations / Public Affairs
Employees: 80
History: Founded in 1983In Russia and CIS since 1991
Shareholders: WPP, the world’s largest communications services company, owns 49.9% of The PBN Company; the remaining shares are owned by the company’s management.
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Top 5 IPO Communications Myths
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#1 Where Is the Market – The Geography Mistake
“ We are listed in London, therefore the peoplethat we need to talk to are in London”
London
Astana
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Implications to Communications
Whether a company lists in London, Hong Kong, or even KASE the investor
pool is similar
The way they think and behave is also similar
All of them read the FT, The Wall Street Journal, Reuters, Bloomberg, they
all read first hand or at least learn about what is written in Business i Vlast,
Kapital, Interfax, etc.
They depend heavily on the sell-side analysts sitting in Kazakhstan and
elsewhere in the region (many in Moscow.)
The communications challenges are, by and large,
the same where ever you list
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#2 Communications Know No Borders
“ To Kazakhstani press we say X,to international press we say YYY…”
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#3 Misguided Approach To Analysts
“ We only want to deal with the “best” analysts.”
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Investor Relations via Analysts and Media (Local and Foreign)
Company Investors
Analysts
Visor Capital, Renaissance Capital, Troika Dialog, JP Morgan, Deutsche Bank, Morgan Stanley, Goldman Sachs, Merrill Lynch, Credit Suisse,
UniCredit Aton, Antanta Capital, Uralsib, Metropol, …
Media
Kapital, Business i Vlast, Vedemosti, Kommersant, RBC Daily, Business FM, Interfax,
Reuters, Bloomberg, Dow Jones, Breaking Views, The Times, Daily Telegraph, Financial
Times, Wall Street Journal, …
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#4 Failing to Pre-empt the Dreaded “Publicity Guidelines”
Employees, agents and other representatives of the Company should be advised to follow these general principles in dealing with the press and public inquiries:
do not respond to press inquiries about the Offering; they should be referred to the designated representative;
do not disclose to the public information about the Offering, except as may be approved in advance by the designated representative;
do not provide any information to the press, public or employees about the Company's financial position other than information in the public domain;
do not speculate on the prospects of the Company generally; and
do not offer any opinion to the press, public or employees on the merits of participating in the Offering.
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#5 The Legal Position on IPO Communications
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What You Can and Should Do
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Understanding Market Context
Volatility in the markets. Residual concern about the levels of corporate debt, and fears of a double-dip recession
A competitive listing environment. Some $20bn of Russian share sales are forecast this year; reports of up to 140 BRIC offerings.
Investors who were hurt in the recent boom and bust cycle in Kazakhstan will look at new issues with greater scrutiny than ever.
Continued cynical view of Kazakhstani corporate governance controls attaches some risk premium
After nearly 18 months of inactivity, the capital markets are again opening as witnessed by a few CIS IPOs in the last two months, attracting a diverse mix of regional specialist and global industry funds.
The money is there – for good stories, well told.
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Formulate an IPO Messaging Strategy
Example Key Messages for a Notional IPO
Communicate the investment case beyond exposure to underlying assets
Highlight the strengths of the business model and the companies sector and positioning
Build reputation for probity of corporate governance
Leverage the reputation capital of the management team
Convince on the motivations for the fundraising and the strategic result
Get beyond the “newest Kazakhstani IPO” story; position the offering attractively in the global market
Demonstrate preparedness for regulatory change
Reinforce the compelling Kazakhstan macro-economic growth story
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Opportunities to Create a Favourable Information Backdrop
Considering an IPO in the future: No restrictions on communications
Decision to go - banks and lawyers appointed: “Publicity guidelines” come into effect
Formal announcement of intention to float (ITF): Virtual radio silence from this point on
Close of deal: 40-day blackout
The 40-day blackout is the last chance to prepare to open the doorsto your new, extended family, all hungry for information
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Information Supply vs Demand Imbalance
Company Supply of Info
Media / Analyst Demand for Info
Intention to Float
Price Range
Roadshow
Pricing
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Pre-IPO Routine Communications
Define routine communications, before the lawyers define it for you
Use the “honeymoon” before you hire your IPO advisors to set precedent,
after precedent, after precedent
Update your website / include key corporate info
Issue press releases in English and Russian, even if not necessary
Put media coverage highlights on your website
Announce financials (if appropriate)
Develop key materials, eg company fact sheet
As a rule, if you don’t do it before, you can’t do it later!
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Leading up to Intention to Float
Can Do
Industry conferences
Routine info disclosure
Print interview (opportunityto review)
Cannot Do
Investor conferences
Non-routine info disclosure
Live interviews
Up For Discussion
Web updates, new materials production, background media
briefings, site visits
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From ITF to Deal Close
Public Documents
ITF Release
Price Range Release
Pricing (Deal Close) Release
Fact sheet / website
“Private” Documents
Syndicate Analyst Presentation
Syndicate Analyst Research
Prospectus
Roadshow Presentation
Manage media interest
Keep momentum
Maintain information flow
Media will write anyway, it’s best to stay involved
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Entering Black-out Period: Final Preparations
Year-long PR / IR plan in place, beginning with post blackout period launch
(e.g media and analyst briefings)
In-house IR capacity / minimum one full-time IR contact
IR page on website
Other key corporate materials ready to go — presentations, Q&As, fact
sheets
Psychological preparedness of senior management for a new public era -
open, accessible and accountable
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And Then You’re Ready!
The PBN Company Contacts:
www.pbnco.com
Bruce Wilson
78 Karasai Batyr Street Office 204-205
Almaty, Kazakhstan Tel: +7 727 239 1133
