Investor Relations

4INVESTOR RELATIONSshare, pricing power between competitors, etc.) and distinguishbetween growth and mature businesses; More open discussion about its financing and accountingpractices (for instance, its policy with regard to risk provisions, managementcompensation). Take advantage of sector valuation discrepancies betweengeographies. For instance, listing your shares abroad, because your maincompetitor is listed there and is relatively better valued or better covered bythe analysts’ community than your own stock. Provide liquidity. By going public, including via an internationallisting, a company creates a market for its share where buyers and sellersare able to trade the share. In general, shares in a public company are muchmore liquid than stock in a private enterprise. Liquidity is created for theinvestors, institutions, founders, owners, and venture capital professionals.It can also supply an investor or company owner with an exit, merger, andacquisition strategy and portfolio diversity. As a consequence, enhancedliquidity will also allow for the diversification of the initial shareholderbase. Raise visibility and increase corporate reputation. The objectiveshere are manifold. It is worth using the publicity around the listing tomake a company’s brand known to a wider market, with clients and suppliersbecoming shareholders, multiply business opportunities and even attractnew business partners: These are likely to feel more confident to deal witha company whose credibility is boosted by its complying with strict regulationsand by the regular publications of audited financial statements. Gettinglisted is also about enhancing the company’s overall image by associatingquality products with a proactive policy geared to retail investors. Forinstance, banks or consumer goods firms may decide to give their shareholdersspecial status as customers (or vice versa!). This brings us well outsidethe framework of Investor Relations, particularly when it comes to promotinga company’s industrial or commercial strategy in a foreign country, evenwhen it is not listed on the local market. It, however, only adds value to thenecessity to design and implement a fully integrated communications strategy.It is also worth knowing that some investors actually have a tendencyto hold long-term positions in companies that are household names. Publiccompanies are more likely to appear in major newspapers and media than aprivate enterprise. Attract and retain employees. Visibility improves as financialinformation about listed companies is communicated via an increasinglywide range of media on a daily basis. Many medium-sized companies, theshare prices of which are given regularly on TV or the radio in the local currency,gain much more publicity this way than they would through costlyadvertising campaigns with little measurable results. This allows them to