Attracting investor attention and building stakeholder value
A cloud technology company that suddenly found its industry out of favor sought SMA’s guidance on strategies to make its messaging stick even when it seemed no one was paying attention to the story. Our targeted IR program helped turn up the volume, attracting long-term investors and increasing valuation.
Lack of visibility and demand in a challenging and highly competitive environment
As the pandemic subsided, pent-up demand for IPOs, including an unprecedented number of SPACs, flooded the market, driving fierce competition among new technology listings for investor capital. Just months later, tech darlings suddenly fell out of favor, as Wall Street battled supply shortages, a tight labor market, and rising costs.
Without a public company track record and established relationships, the technology client struggled to build demand for its shares.
The Sharon Merrill Advantage
A strategic investor relations program designed to drive investor demand
SMA implemented a targeted investor relations program designed to enhance communications between the company and the investment community. The company’s strategic positioning was elevated and simplified. The investor targeting lens was widened to include prospects whose portfolios and investment styles included companies in out-of-favor industries. These improvements helped to yield an extensive series of high-quality one-on-one and group meetings, coupled with conference and roadshow presentations.
The investment community’s perception soared and the stock outperformed
Over the ensuing year, institutional ownership in the company increased more than 40%, and the stock outperformed its peer group by 91%. Validating the messaging and targeting initiatives, all the investors participating in a year-end perception survey gave the company’s communications high marks. Many investors cited management’s availability and credibility as key strengths.