As far as a publicly-traded company is concerned, investor targeting is one of the most crucial aspects of their investor relations program, but, it’s not as easy to map out as it seems. There are many moving parts to take into account and to implement the ones that will reap out the best results for your needs at a given time.
When finding new stockholders to attract them to your company’s stock, the best you can do is find out relevant peers in your industry and identify who their top holdings are. Furthermore, this can be divided by type of shareholder, geographic region, retail, or institutional. It has always been a fact that there is a direct interdependence between a stock’s trading features and cost by who holds that particular stock. In the beginning, you would easily know your current holding breakdown, and if you want to reduce or increase the retail vs. institutional holdings. This would then inform who exactly you should shortlist.
In previous times, the investors merely focused on getting information on financial results and they didn’t expand themselves. But, now things have taken a drastic change. The investors today are much more attracted to the concept of knowing if or not a company follows sustainable deals. Therefore, it’s a must to figure out different, new and attractive ways to come up with your IR narration.
Because every individual takes something different from reading any detail, it’s very important to put your key messages very expressively. Great storytelling is the core of every communication and is something that can make a company stands out from the rest, plus it also lets the potential investors know why it’s exciting to buy the stock. Besides, the companies also need to know and have details on what type of stock they are-value, income, growth, etc. and then adapt the content to those investors.
Investors in today’s era are thinking big and investing globally. And therefore, it’s important that IROs think globally too and satisfy all the needs of their potential investors. You should never limit your main focus and attention to the common investment hubs; instead, you must explore and put your best effort forward effectively.
And last but not the least; you must be in regular touch with your finance and economics department as they can come up with some invaluable and vital insights into your company’s economic reputation.
So, with all these strategies, you can have an effective investor targeting and have some very potential investors on your list. Aside from this, you can also make investors come to you by planning a one-day corporate visit, as this can be a great way to meet and communicate with several investors at the same time and on the same day.