Certain factors are vital to a good relationship with your roadshow partner
In 2009 I was fortunate to tie the knot with a very understanding and forgiving woman. During the years before our marriage and the subsequent 18 months, three days and eighteen hours (her count), I discovered that the keys to a successful relationship are communication, honesty and trust. Your relationship with your roadshow partner is similar.
When planning a successful roadshow, you need to choose a partner you can trust and with whom you can be open. At HSBC, our analysts, sales teams, corporate access people and bankers work together to deliver successful roadshows and enhance relationships.
When choosing your broker, make sure communication on the following issues is clear and mutually understood.
Expectation management: talk to your broker about any relevant issues before your roadshow. If your management team has certain expectations, be up-front and honest, so your partner can deliver the best schedule for you.
Work together on your target list: identify your shareholders for the city you are visiting. Meeting them, or at least giving them the option for a meeting, is critical to producing a happy shareholder. Next, target potential investors with your broker. Brokers talk to investors daily and we are well placed to know their interests and trading habits. Screen the investor universe for holders of peers and sector players, as well as country and regional investors.
Hedge funds are shareholders, too: corporates can be hesitant about meeting hedge funds, due to their shorting ability and lack of transparency. The best way to get a view into the hedge fund is to meet with it and convince it of your story. A hedge fund that is short is the only guaranteed buyer of your stock, when it closes out a position. Hedge funds can short anyway, so you should especially meet those you suspect are short and convince them to go long – and stay long. Your broker can help you navigate these funds.
Feedback is critical: ask for feedback from your broker after the roadshow. While some investors prefer not to share it, we can help garner some feedback and give you our own feedback and thoughts from the tour.
Communication doesn’t end with the roadshow: maintain a dialogue even after the roadshow is complete. Sales teams will continue to sell your story and access should be open for them to ask questions. We can also give you regular insights into how investors perceive your stock and continue to introduce you to new investors.
Finally, most brokers value a relationship with corporates that is long term; effective and constant communication can only enhance this relationship.
Alex Lupis is director and head of corporate access for Asia-Pacific at HSBC.
