A publicly traded company and bond issuer engaged in the infrastructure development and operation sector, currently standing at a not very advantageous position on the market, with an analyst coverage of four institutions and placed in the medium liquidity category of the Mexican Stock Exchange’s ranking, decides to underpin its IR program, focusing on improving the company’s position in these fronts. This, with the dual objective of performing a comprehensive financial engineering program that includes the execution of multiple follow-ons, as well as the refinancing of its Senior Notes and issuance of a new Eurobond.
For its wide spectrum of innovative solutions, specifically tailored for publicly traded Mexican companies, IRStrat is engaged as strategic advisor, contracting the full-service package (IRStrat I + IRStrat II + IRStrat III), with the mandate of enhancing the delivery of message quality, optimizing the narrative and communication of the strategic message, as well as profiling and rapidly expand investor base and analyst coverage. The foregoing, aimed at strengthening the company’s positioning on the markets, to improve the trading of its shares and achieve a more attractive mark-to-market valuation.
IRStrat carries out an integral assessment of the factors that determine the issuer’s positioning, through an initial perception study covering the company’s investment thesis and its communication, its management team’s performance, its stock trading, and effectiveness of its IR program, among other aspects. With the collected information, IRStrat develops a strategic road map to lead our customer to the top levels of adoption of best practices and market awareness. Furthermore, IRStrat establishes the KPIs/targets and tracking mechanisms to ensure a successful execution.
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 lobbying, prospecting and communication strategy.
IRStrat performs a thorough training of our client’s executive team in financial communication. All IR materials are insightfully developed to ensure optimal quality (quarterly earnings release, annual report and regulatory filling, investor presentation, IR website, video production of senior executives’ messages, webcasts and investor fact sheet). In parallel, IRStrat implements a comprehensive intelligence system which rapidly gathers information on our client’s peers, industry and local, regional and international markets, with a go-to-market focus. Likewise, the investment thesis and short- and long-term guidance are developed and widely communicated.
IRStrat develops an optimal prospection and communication strategy (including non-deal roadshows, site visits and investor days). Additionally, IRStrat draw up an active PR agenda, encompassing a deep participation in the most influential financial summits and forums, strategic lobbying with investment funds, retirement fund administrators and exchange-traded funds, as well as an exposure to the most influential financial media in Mexico and the United States. Likewise, IRStrat conducts presentations to the analysis and promotion departments of the different financial institutions and brokerages, focusing on expanding the awareness and interest of the company and its stock.
Our client climbs in the most prestigious IR rankings, becoming a renowned and publicly visible company in the markets. The client was able to successfully execute two follow-ones for US$820 million, refinanced his interest-bearing liabilities (reducing debt costs by 225 basis points and extending debt maturity profile to 7 years). Additionally, the company placed a new Eurobond under the same refinancing conditions for another US$300 million. Our client has an analyst coverage of 15 institutions and is placed in the high liquidity category of the Mexican Stock Exchange’s ranking, without disbursing a large amount of resources by maintaining its 2-person IR department and counting on IRStrat strategic support.