IPOs are a time-sensitive event that can have a significant impact on a company’s success. By hiring an experienced IRO, you can ensure a smooth and successful process. Let’s discuss some reasons why hiring an IRO is so important in IPOs.
During the IPO process, a great deal of information must be provided to the market to ensure a successful transaction. A competent and experienced IRO streamlines this process and ensures relevant information is disseminated to investors in a timely manner. A single point of contact also helps avoid confusion and facilitates communication among key stakeholders and advisers.
An IRO is responsible for developing and managing the company’s communications strategy. This includes setting the tone for communications with investors and other stakeholders. He or she is also responsible for co-ordinating and managing all communications and engagement activities during the roadshow. This helps to avoid unnecessary delays and ensures all important information is communicated to investors in a consistent manner.
In addition to providing internal management support, IROs are responsible for identifying and mitigating risks during the IPO process. They play an important role in ensuring the company’s objectives are met and that all risks and issues are identified and addressed in a timely manner. They will also work with senior management to develop and refine the company’s post-IPO communications plan to ensure the long-term success and stability of the company.
Risk and expectations
To ensure the success of the IPO, appropriate steps must be taken to mitigate risk and manage expectations. A competent and experienced IRO can help mitigate these risks by managing investor expectations and communicating effectively with key stakeholders. He or she will also work closely with senior management to identify and implement the most effective strategies to achieve the company’s business objectives and maximize shareholder value.
An experienced IRO will have a thorough understanding of the financial markets and be able to leverage this knowledge to effectively implement the company’s marketing strategy. By working with management to develop and implement an effective communications strategy, he or she can maximize the company’s potential and long-term returns to shareholders. When a company decides to hire an IRO, it should look for an experienced professional with a solid track record in the industry.
The success of an IPO is critical to the overall success of the company. If an IRO does not join the company until after the IPO, he or she will have a difficult time articulating the message and communicating his or her vision to the company’s stakeholders, especially investors and shareholders. This is because the onboarding process takes longer: the underlying messages of the IPO prospectus need to be learned and thus translated into a compelling story.
Compliance and sustainability
When a company engages an IRO, it benefits from that professional’s experience, knowledge and expertise in the capital markets. This enables it to identify and capitalize on new opportunities and maximize the value of its securities.
At the same time, the IRO is not only responsible for communicating the IPO message to the investment community, but must also ensure the company meets its obligations as a public company. Nowadays, a company is assigned more and more responsibilities and tasks. On the one hand, the IRO must ensure the message is conveyed for an appropriate market capitalization and, on the other hand, he or she must check that the company complies with these requirements, as non-compliance can lead to heavy fines by regulators, which can have a negative impact on the company’s image. At the same time, the company needs to get a head start on its sustainability strategy and define its focus areas for the coming years, such as carbon-neutral growth, corporate governance and ethics, and so on.
It is important to have an IRO from the beginning of the IPO. This role is critical to ensure the business is adequately prepared for the new challenges of running a publicly traded company and its associated compliance requirements and is able to meet its new obligations as a post-IPO organization.
Müge Yücel is director of investor relations & sustainability at Galata Wind