A roadshow is the process by which a company management team visits various cities to engage directly with the investment communiity in pre arranged 1 on 1 meetings or lunches. Roadshows can have a specific purpose, when a company wishes to raise capital for instance or explain a set of corporate results. They can also form part of an ongoing investor relations program (which is where the majority of Stellium’s roadshows sit).
The roadshow process
We would strongly advise that an IR program is undertaken prior to any roadshow in a new jurisdiction. This serves the purpose of raisign awareness of the client company before they undertake the roadshow; thereby ensuring the best possible program of meetings during the roadshow days.
This preliminary program can vary in length depending on how mature the client business is and whether there is any existing awareness of their activities already. If there has been a change of company strategy then this can increase the length of time that the preliminary work can take. In the normal course of business we would advise that roadshows should form part of a broader IR program encompassing digital engagement, on the ground news updates (Stellium can offer this service and act as your IR rep in Europe) and roadshows.
Typically, roadshows can last anything from 1 to 3 days per City visited. The length of time will depend on the number of interested parties that the client wishes to see in any one jurisdiction. For example a mining company wishing to undertake a European roadshow could potentially visit London, Zurich (and Zug), Geneva and Paris. These are cities with a large concentration of investors interested in the mining sector. Other sectors such as energy, cannabis or technology would have a different jurisdictional mix to their roadshow and Stellium would advise on this beforehand.
Stellium will contact a range of targeted investors / brokers / analysts according to the client’s requirements. We will then set up meetings with interested parties and accompany you on the roadshow to ensure everything runs smoothly. After the roadshow is complete, Stellium will contact and collect feedback which is an invaluable insight into the effectiveness of the roadshow and messaging.
The benefits of a roadshow to a client company can be significant. At the very least, many investors will have a requirement in their investment process that they meet with company management before any investment decision is made. Therefore, without a roadshow to physically meet the investor the client is highly unlikely to get a positive investment decision relying on other methods of communication alone.
Roadshows form the first stage of establishing a rapport with investors, analysts and brokers. There are few more effective ways of getting members of the investment community comfortable with the management of a prospective investment than meeting face to face.
It’s important for client companies to appreciate that investment decisions can take time. Investors will want to see that the management of a prospective investment deliver on what they say they will do. Thus, it’s normal that a company will need to re-visit European investment community in order to attract new investors / analyst coverage.
Who we work with
Stellium is interested in hearing from companies operating in our sectors of interest. Namely these include companies in the Mining, Energy, Renewable and Environmental Solutions, Medicinal Cannabis & CBD, Technology and Special Situations sectors. Further information on our sectors of interest can be found found on the Stellium Services web page.
If you’re interested in exploring how Stellium can assist your business with a roadshow or any of the other services that we provide then we would love to talk to you. Fill in your details and a member of our team will be in touch to discuss your business needs and find a solution that works for you.