Investor roadshows are a fundamentally important part for an IR programme. Roadshows are a series of informative meetings that take place in key investor locations worldwide over a number of days in order to reach a wide range of current and potential investors.
A roadshow can consist of one-on-one meetings, small group meetings and larger group meetings (e.g. at a lunch or dinner).
Participating in the roadshow
Representatives of a listed company, usually management (CEO and/ or CFO) and the IRO, participate in the roadshows and are usually accompanied by the bank or broker that has organised the roadshow.
Purpose of the roadshow
During a roadshow various meetings are scheduled during which the company presents its publicly known strategy and key investment proposition and (potential) investors have the opportunity to engage with management regarding the strategy and the financials of the company and -if wanted- discuss (pressing) matters. During these meetings it is important that a company does not provide any price sensitive information. The main purpose for investors is to meet management in person and get a better (and more detailed) understanding of the company story and for the company to build a reliable reputation. Whereas the numerical homework is done by analysts, management must be able to show credibility and decisiveness during these meetings.
Occasion and frequency
Dutch listed companies usually schedule a roadshow following the publication of their (semi) annual results, these are the so called ‘non-deal roadshows’.
In case of an Initial Public Offering (IPO) representatives of the company participate in road shows in order to arouse interest in the companies’ securities. During these ‘deal-driven’ road shows potential investors are informed about the company’s equity story. A roadshow by and large is regarded as critical to the success of the offering.