Investor Relations

18INVESTOR RELATIONSInvestor Relations message and materials development, inparticular upon financial and strategic announcementInvestor Relations action plan (presentations, roadshows,financial calendar, etc.)StabilizationUpdated share ownership identification, by category andby geographyMeasurement of the return on investment(ROI) of InvestorRelations: evolution of the stock price, change inrecommendations, shift in the shareholder base,perception of the investment communityPhase 1 Phase 2 Phase 3 Phase 4Figure 1.7 Stabilization (Phase 4)Maintaining or putting the company on the radar screens of analysts andinvestors long after the IPO spotlights are switched off is going to requiretremendous work. Meetings with new analysts and investors will have beenheld, the share price has trended higher or lower, and the composition ofthe free float has probably changed. In addition, certain deadlines, such aslock-up periods, may have been in place beyond the IPO. They are knownto the market and mentioned in the IPO prospectus. Once large shareholdersor groups of institutional investors have potentially taken advantage ofthese periods to sell their shares within these deadlines, the share price willbe able to move more freely.All of this gives the company enough experience toidentify areas in which it can improve the organization of its InvestorRelations program;add other Investor Relations management tools;conduct ongoing analysis of its shareholder base by category andgeographic location;evaluate the return on investment of its Investor Relations as evidenced bythe share price, equity research on the company, stock recommendations,the consensus, and perception studies focusing on its financial image.1.3 INVESTOR RELATIONS FOR PRIVATECOMPANIESPrior to obtaining venture capital or considering a public listing at somepoint in time in their growth strategy, emerging companies or “start-ups“