Liquidity Enchancement Program

Client's profile

A publicly traded company engaged in the retail sector, which is listed on the Mexican Stock Exchange since the 90s, has noted that its liquidity has declined to the low liquidity category of the Mexican Stock Exchange’s ranking, coupled with a greatly reduced trading activity. The company decides to resume and strengthen its IR program, after entrusting it to its treasury and comptroller departments due to costs.

Through the revitalization of its IR program, and a comprehensive counseling in corporate finance and trading techniques, the company seeks to reposition its stock to a point where it can obtain the sufficient liquidity and valuation to carry out a follow-on, which in turn provides the necessary resources to move forward in implementing its core business plan.

Mandate

For its proven capacity and experienced team, IRStrat was chosen as the best option to lead the repositioning project of the company's stock, through its tailor-made solution of Liquidity Enhancement; with the mandate to design and implement strategies of trading, issuance, prospecting and investor base broadening, as well as improving the visibility and perception of the company in the markets, with the objective of achieving a better liquidity and valuation.

Solution

Strategy

IRStrat carries out an integral assessment of all relevant factors having a bearing on the trading of the stock (IR program, trading concentration, floating composition and market participant’s perception about the issuer). With the collected information, IRStrat prepares a road map to reposition our client in the markets and put it to the forefront. Additionally, a detailed work agenda is defined, containing clear targets of trading (volume, number of operations and median transaction), visibility (investment recommendations and analyst coverage base), and valuations (P/B and EV/EBITDA).

Our team, working with the senior management, begins to develop the company’s investment thesis, history and competitive advantage, as well as the communication style (qualitative and quantitative), and an optimal prospecting and communication strategy.

Tactic
Results