The cautious optimism that we have been talking about all year is still with us. Companies may not be racing to the IPO market yet, but many are considering it and the US remains the most attractive prospect. Several European companies attended the NYSE’s “Roadmap to Wall Street” event in London last month, at which the New York Stock Exchange, and advisers from the legal, financial, communications and investor relations worlds, led sessions to share their experience on how to prepare for a US listing.
One of the day’s speakers was Piers Morgan, currently CFO of Pangea Bio. When it comes to experience there’s no substitute for being there and doing it, and there are few people who have been there and done it as many times as Piers – a seasoned biotech executive who has taken five European companies public, three in the US (uniQure, Verona Pharma, and Compass Pathways).
I was fortunate to work alongside Piers during our time together at Compass Pathways (Nasdaq: CMPS), taking the company public in 2020. We both agree that getting the story right and telling it well, early and often, are critical to success in the US IPO market. During our session: “Communications and investment engagement”, Piers shared his insights on how to make the most of communications and investor relations (IR) efforts pre, during and post IPO. For those who missed it, here are some of his top tips:
1. Put a communications and IR programme in place early on
- As a private company, it feels like you’re always fundraising. As a public company, you’re only officially fundraising at certain intervals, but you are marketing all the time! So, it’s important to work out what your story is and put a programme in place to tell it to investors, media and others. Do this as early as you can; once the IPO process is underway, companies are limited to only communicating as part of the ‘normal course of business’
- If you’re preparing to announce data, remember to plan for all scenarios and have a communications strategy ready for all outcomes, not just the positive ones
2. Don’t leave a CFO alone in the US
- It’s helpful to have at least one executive on the ground in the US, not least to share out the communications and IR responsibility that will follow a US listing, with regular investor and media meetings, conferences, earnings calls, and roadshows. But don’t hire a US CFO and leave them isolated; they need to feel part of the team
- You don’t need an in-house IR person before an IPO, an external agency is a more effective resource
3. Always know where the sandwiches are
- The IPO roadshow is a tough endurance course whether you’re doing it in person or online. Physical meetings are recommended because they give the presenting team time between meetings to review progress and agree strategies
- Keep eating and caffeinating. Maintain high energy. And always know where the sandwiches are
4. Post-IPO, keep telling your story
- Once you’re public, in between managing the CEO’s anxiety about the share price (!), focus on continuing to tell your story
- Expand the pool of sell-side analysts covering your stock; embark on non-deal roadshows and attend investor conferences; maintain your visibility
5. Hit your milestones
- As part of the communications programme, make sure you have newsflow lined up for before and after the IPO
- Set out clear milestones – and hit every single one
Thank you to Piers for sharing his experience and wisdom, and to the NYSE for hosting this event. If you have any questions about communications or investor relations support as you consider an IPO in the US, do get in touch with me: tracy.cheung@icrhealthcare.com.
