IPO candidates: don’t trip on the basics – remember equity story
Summary
Going public is a long journey with many stages. A carefully thought-out and prepared equity story paves the way and illuminates the future. When the story is crystal clear and fully internalised down to the last detail, the IPO process—and any associated public offering—will go more smoothly. All the way through the listed company’s day-to-day operations.
What exactly is an equity story? An equity story openly and honestly shares successes, but equally so the challenges. It guides expectations beyond the next quarter and tells investors and shareholders where the company is headed and why it is a good long-term investment. For the company itself, the equity story serves as a guiding principle and an extension of its strategy. It is a means of building the company’s market value and trusting relationships with investors and other stakeholders. If necessary, it also signals when a change of direction is needed.
Why, then, is an equity story needed as early as the IPO stage? Because a good equity story fosters both understanding and interest. It reveals the core of the company’s business: what it does and why; where it has come from and where it is headed. Above all, it describes the company’s business, markets, strategy, goals, and growth drivers. The equity story also crystallises the company’s strengths, differentiators, and sustainability aspects. When this groundwork is done well, the equity story runs consistently alongside the company’s various stages, and there is no need to rewrite this guiding principle at every turn.
However, the equity story is not just words, nor is it ever a fairy tale. The equity story is present in every action, every interaction, and across all channels—both internally and externally. For good news travels fast, and bad news travels even faster. It is, therefore, a matter of holistic communication that is embedded in the company’s DNA at all times.
There are many examples of good investor stories. But there is never a template to simply copy. That is why you need to set aside time to craft an equity story for a company going public. Haste is not the right driver at this stage, as it is difficult to rewrite a misinterpreted story without damaging your reputation. Often, an equity story also requires an outside perspective and experience. This is also the stage where you shouldn’t let your own momentum go to waste, including exploring new channels and different forms of communication. It is equally important to remember that this phase comes only once and will follow the company throughout its future life as a listed company.
Interested? Get in touch, and let’s discuss further how we can help your company create an engaging equity story.