In case of low liquidity of securities of the company of IR-communications play a key role. When the market doesn’t display a real stock value of the company, IR-department makes the preparation and distribution of the necessary information on how much qualitatively and in due time it is performed. On the basis of the given information investors make the decision and carry out calculations of fair value of the investments.
If shares of company aren’t quoted in the market or their small quantity is quoted, department tasks become simpler. Because they have very small amount of shares on free sale (free float), direction IR is for us is more image-like, rather than strategic. Therefore they don’t constitute special plans — they try to be the open company and to share results of the work. Their task at the given stage is to support IR, to be opened and not to disregard investors who are interested in the company.
In most cases the IR-department is created under a specific goal, first of all —attraction of foreign investors. Despite recommendations of specialists to create service on communications with investors at least for half a year in practice of the companies it occurs, as a rule, already after placing.
Typical situation: advisers have prepared the company for public placement of shares, have conducted it and have left, and the company remained in private with the investors and regulators. Today investment structures actively propagandize delights, without focusing attention on the difficulties appearing at the company from the moment of sale of its shares, —, the financial officer tells. — So, investors will start to watch closely each step of the company, being interested in liquidity of the shares literally every minute.
Therefore regular activity of the IR-manager which only thus will manage to provide an objective estimation with the share market of the company will be especially actual and to create favorable circumstances for future attraction of the capital. But for this purpose, according to the expert, on communications with investors it is better to think of service creation in advance. And not only when the company is going to leave for the capital markets, in the long term the IR-expert (department) should exist in any company which is the emitter of securities.
The companies which have created effectively functioning of IR-service, have really managed to expand sources of attraction of the capital. Nevertheless, the departments are being created and its functions are extensive enough. The company actively works with the international financial institutions concerning debt financing attraction. On a constant basis the information on company work is represented to existing investors and maintenance of partner relations demands from us enough big efforts especially at the work of initial stages.
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