IR - Investor Relations
Planning on going public and initiating an IPO? Do you own a public company listed on the exchange? The time has come to activate a fresh and profitable marketing strategy—marketing to investors!
The purpose of
Investor Relations (IR) is to assist you, as public company owners and directors, in promoting your company to capital market investors, analysts, and decision-makers in order to increase share negotiability and raise capital.
IR activity - A growth engine for your business expansion
The value of a company’s share derives first and foremost from its performance, business model, products, and growth rate. However, without high-quality IR activity, investors will not be fully informed about your company’s advantages.
Investor Relations worldwide
A majority of public companies in the West activate operate extensive IR platforms using advanced digital tools, aimed at marketing to investors.
Those companies, understand the significant value of IR and of establishing long-term relationships with investors in a way that inspires confidence and dedication to the organization, its leadership, and strategic initiatives.
Such relationships inspire investors to believe in the company and continue holding their shares , even in times of crisis. Furthermore, potential investors are inspired to decide to invest in company shares.
This is an opportunity for companies listed on TASE to align their operations with international standards, and capitalize on the resulting advantages IR activity is aimed at encouraging demand for company shares, increasing exposure to the company’s results and forecasts, recruiting attracting new investors, and strengthening relations with existing investors.
Investor Relations – during challenging periods
Companies are better equipped to manage crises when they maintain ongoing Investor Relations activity. Companies that effectively manage their Investor Relations activities, can control both the content and manner in which they are covered in the media.
This assists them in coping with the situation and communicating information during crisis periods.
Establishing and maintaining credibility, openness, and transparency—all of which are reflected in high-quality Investor Relations—serves to safeguard investor trust during difficult times and even generates opportunities for reinforcing relationships with the capital market. During periods of capital market expansion, effectively managed Investor Relations (IR) can enhance the visibility of company activities, thereby ensuring that company shares are valued fairly and positively.
The Benefits of Investor Relations ?
Investor loyalty
- Attract new investors while retaining existing ones during periods of economic expansion and crisis.
- Analysts’ coverage
Expand the scope and quality of analyst reports that are distributed to active players in the capital market. - Support capital-related events
Support the company’s capital-related events such as bond issues, road shows, mergers, acquisitions, and so forth. - Raising capital
Raise capital efficiently from existing and new investors. - Liquidity and fair value
Increase the value and liquidity of company shares so that they reflect the company's value. - International investors
Exploit possibilities for enlarging the company’s investor base, to include international investors.
Toolbox
In this section, we've compiled a range of digital solutions for managing your company's investor relations, a conventional practice in Israel and around the world. These solutions allow you to implement a sustained, efficient and extensive investor relations campaign while maintaining transparency with the capital market—in accordance with the budget and time resources at your disposal.
For your information, here are a number of important rules for establishing an efficient and high quality investor relations apparatus:
- Most of the digital tools can be activated and managed independently with the aid of the companies that provide them, or via a company that specializes in the field of investor relations. We advise your organization to appoint an employee to oversee activity vis-à-vis the professional IR companies or to activate the tools independently.
- Using the digital tools necessitates regular maintenance of all information published about the company, news and key events as well as any information that promotes in-depth familiarity with your company in the capital market and among potential investors.
- It is important to sustain your activities that target relevant entities in the capital market and to employ digital tools for communicating your messages via conference calls, mailing list notifications and more.
- Bear in mind that digital resources are a tool for supporting your company's long-term planning of IR activity and strategic exposure.
For your convenience, the website presents information on IR companies that operate in Israel in the event you are interested in working with a professional company in the field.
FAQ's
A public company uses investor relations activities to provide regular information to market players, analysts and investors. IR activity makes it possible to convey the company’s story with reference to competitors, the market and the business environment. IR also provides pertinent information on the company's performance, financial statements and future plans, thus boosting coverage of the company.
IR activity includes:
disseminating information about the company; designing and formulating presentations and company messages that target the capital market; locating and creating relationships with potential investors; initiating personal meetings and ongoing conference calls with investors and analysts; organizing investor conferences; regularly updating the IR website and other digital platforms, and regularly promoting company-related events and announcements, financial statements, etc.
The company can promote IR activities in several ways:
- Recruiting a company employee as Investor Relations Officer (IRO)to oversee the company’s IR activities. The IRO will represent the company in the capital market and maintain regular contact with investors interested in the sector in which the company operates. The IRO should be aware of issues on the company’s agenda, as well as major events in the capital market and economy that could affect the company and its results. The IRO enjoys direct access to the company’s Chairman, CEO and VP Finance, thus assuring uniformity and consistency of company messages to the capital market.
- Employing an external IR company to represent the company in the capital marketand allowing it to manage and implement the company’s IR activities.
An external IR company has the advantage of intimate familiarity and experience with players in the capital market and its real-time updates on mailing list market changes (such as analysts moving from one organization to another), in addition to its previous experience in grappling with a variety of circumstances. An IR company also organizes meetings with investors, and assists in preparing relevant materials for investors and reinforces personal relationships with them. - A combinationof an Internal and external IR, employee from the financial or marketing department (depending on the organization’s structure and strategy) and an external IR company or consultant. This option combines the advantages of an external company with those of an internal employee.
The goal of PR is increasing public awareness of the company and its products through the media. IR activity focuses on increasing the company’s exposure to investors, investment managers and analysts, so as attract new investors and increase liquidity of the company’s securities.
IR strategies and operating methods differ from PR activity; still, PR is part of the IR toolbox and is included in the service package offered by investor relations companies.
Regular IR activity is unquestionably more advantageous than specific IR. Just as regular marketing of company products to customers is highly advisable, so too is such marketing to investors. IR activity enables investors to gradually gain familiarity with the company and provides information and explanations regarding company-related events. Furthermore, regular IR activity is extremely valuable in times of crisis. It enables the company to prepare for any scenario and deliver a swift response when necessary. Thus a company can respond immediately and effectively to a crisis, rather than waiting for it to deteriorate and complicate matters prior to recovering and reestablishing stable IR activities.
Furthermore, ongoing activity with existing and potential investors reinforces their trust (as well as that of the entire capital market) in the company, its vision and executives. Optimally-managed IR aids in recruiting additional investors and maintaining a share price that reflects the company’s business.
TASE considers the development of Investor Relations and the creation of tools to increase the transparency of exchange-listed companies, including their corporate conduct, to be of the utmost importance. The goal is to provide investors with an understanding of the potential economic value of the companies and assist companies in making their information more accessible. As a result, they will be able to attract additional investors and increase the liquidity of their shares.
A website is fundamental to start with IR activities. Specifically, an IR website showcases the company to the capital market, communicates the company story, and introduces company figures, products, financial statements and strategy. The website is the company's prime arena for relating its story and serves as the first point of contact for analysts, investors, and other interested parties.
An IR website usually offers many advantages, especially for relatively small companies, because those companies have comparatively few direct communications with the capital market and lack exposure to new investors. Analysts coverage very few companies outside the leading indices. For the relatively small companies, an IR website serves as the company's business card and portal for financial information and reports. Therefore, an IR website is a vital first step in expanding the company's circle of investors.
Numerous companies maintain IR websites as part of the accepted standard in leading exchanges throughout the world. Companies that wish to be exposed to international investors also need an English language website that includes regular reports and financial statements.
In summary, an IR website that includes ongoing, accessible information in Hebrew and English increases company exposure and aids recruitment of new investors while maintaining existing ones. The website, however, must be frequently updated. A website alone is not enough for promoting efficient IR activity, and there must be additional IR elements to achieve broader exposure and establish a relationship of trust with the capital market.
While it is true that the market is small and that its players are more intimately familiar with each other, you must bear in mind that the amount of time and resources that analysts, investors, capital market entities, and institutional investors can devote to your company is limited. Naturally, information that is readily available and easily accessible facilitates the company's task of winning over potential investors. Therefore, even if you are acquainted with capital market players, effective and sound IR activity will focus more attention on your company.
What is the list of IR companies that TASE has published on its website and does TASE play a part in the engagement?
TASE is promoting digital Investor Relations solutions as part of its efforts to advance the IR field in Israel. The development of digital resources together with the changes in how information is consumed and transferred in Israel and abroad, has created an opportunity for companies to develop their IR activity—using established effective, convenient, and advanced methods with a reasonable investment of time and resources. We have selected an assortment of proposals and prices to present to you from the total number of proposals that were received. We trust that the variety of proposals will help you reach the services most suited to your needs. You should contact and engage with the companies directly. TASE shall not participate in or become a party to any such engagement.