This is a guest blog post by Ishareinfotv.
Communication, Communication...
That's the AIM! Much is written and commented on by Private Investors and industry journalists about what is the right balance of communication for small caps. Some believe that fundamentals will pull through and that companies should be left alone to deliver results. But while LSE-AIM do not insist upon companies having a PR firm as they do with a Broker and Nominated Adviser (NOMAD), they do recommend engaging a PR firm. Make sense? Not really!
Why do companies list?
Invariably this is done to raise capital so that a business may instigate or build upon its operational activities and deliver on its plan. Private Investors are frequently the source of capital for AIM companies at this first stage being an Initial Public Offering (IPO). Communication reflects this need and will often continue which means an enthusiastic investor, word of mouth and hopefully a rising share price. This then enables companies, along with operational success, to access other credit lines to further develop their business that previously might not have been available to them. This begins to change the reliance of companies on the Private Investor.
Remember, from day one, the Private Investor is fundamental, critical even, in ensuring a successful IPO and enabling the company to begin delivering on its operational plan.
PR firms – What is their role?
Well as Private Investors, we would like to think that they are employed to communicate with us, but do they always have that remit from their client? This is debateable. Many seem to work with their client and seem to be City- facing, but do not engage and communicate with Private Investors who often demand to know more. Private Investors are frequently kept in the dark and they almost always want to be kept up-to-date with their investment. This is a totally reasonable expectation and one that should be fulfilled. This can be done beyond any regulatory requirements.
Actions: If a PR must be engaged, ensure they have a Private Investor remit, set timeline objectives and goals and if they don’t succeed, review and if needs be, release them.
Communicate, Communicate, communicate
As a result of Internet based brokers, the ability and ease of investing is significantly enhanced. Add in Bulletin Board forums and social media and you know that companies who choose to engage through these…
