The reality is that no company can expect investors to beat a path to its door, so it must beat a path to theirs. IR is the route.
Most stock-exchange listed Asian companies, particularly smaller and mid-sized companies, seriously underestimate the importance of communication, seeing it as something largely cosmetic that can be easily handled by in-house ‘PR’ staff or cheap local consultants.
Furthermore, many companies see PR, internal corporate communications, IR and branding as very separate areas to be dealt with by different, often competing, internal teams and external consultants. The result is frequently a mish-mash of materials and events with inconsistent messages and poor quality English. At best the effect is simply confusing or boring. At worst it is embarrassing.
While each stock market in Asia Pacific has its own set of rules and regulations, they all have one thing in common: the market and its participants have high expectations. These key players include analysts, investors, the media and other stakeholders, all of whom can have a significant impact on a listed company, from the smallest to the largest.
Communicating with these varied audiences is what Investor Relations (IR) is about.
PYI Consulting’s approach to IR seeks to achieve three key results for our clients:
- A fair market valuation for the company
- A level of liquidity sufficient to enable trading by retail and institutional investors alike
- The ability to attract new capital