After a few years of gloom, the Finnish economy is showing long-awaited signs of recovery. As the economy recovers, the appetite for IPOs is also expected to pick up again–for example, the Finnish Private Equity Association expects more companies to plan IPOs this year or by 2026 at the latest. Hopefully, the threatening global trade war will not stifle the budding growth.
Simply executing a communication program for the IPO does not automatically make a company a success. Entering successfully to the stock market requires raising the company’s profile well in advance, even years before, going public. Familiarity builds trust, and a well-known company attracts more investors than an unknown company. A company planning to go public needs to have its brand awareness strategy in place.
Implementing an awareness strategy requires high-quality, long-term communication. The company needs to communicate its growth strategy, business operations and culture to the stakeholders. Engaging staff as messengersshould not be overlooked, as employees often have access to wide audiences through their own communication channels. Not to forget, quality thought leadership communication raises your company’s visibility through organization’s expertise.
The company must be able to clearly communicate its competitive advantages over competitors. How does the company differentiate itself from other players in the industry? Does the company have an interesting story to tell and what is company’s mission in the world? The story must convey emotion and vision, not just facts. A compelling narrative shapes the investor’s perception of the company. Targeted communication on topics such as business performance, customer wins and references, acquisitions, company culture, and management’s views on industry and market trends is key to building brand awareness.
The media plays an important role in building brand awareness when planning to go public. Regular exposure, for example in financial and industry media, builds trust in the company and increases awareness among the target audience. Company spokespeople also need to know how to interact with the media. Media training is a good way to learn how to deal with journalists and their difficult questions. It also helps spokespeople to tell company’s story in a way that is interesting to the media.
Starting early to build brand awareness for a listing is crucial. Laying a strong foundation well before going public and timely IPO communications are key factors in ensuring a successful IPO.