A financial company has executed a number of debt placements (local notes and Eurobonds), and is willing to take a step further on its fundraising strategy through an IPO, with the aim of strengthening its capital structure and enhance its liquidity and indebtedness ratios.
For its capabilities, contact network and institutional outreach, the company decided to bring in IRStrat as a key advisor in this process, contracting the IPO Program solution, with the mandate of easing the placement process, shorten the execution time, and maximize the valuation and size of the placement (full greenshoe or exercise of the whole over-allotment option).
IRStrat performs a preliminary market study and assesses the client's issuance scope in the local and international equity market, to elaborate a detailed action plan for achieving an optimal placement. Likewise, IRStrat prepares a work agenda detailing the precise steps to complete the filling of the prospectus, as well as carry out the roadshow and book building
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.
IRStrat carries out the targeting and beauty contest of the underwriter syndicate, the targeting of institutional and retail investors, the national and international roadshow, and elaborates a proxy of the closed book. Likewise, an intensive lobbying is carried out with investment and pension funds, as well as presentations with family offices, endowments, sovereign funds, marketing and analysis departments of brokerage firms, treasuries, blue-chip mutual funds and specialized financial media.
Additionally, IRStrat performs a thorough training of our client's executive team in investor education, roadshow presentations, face-to-face meetings and specialized forums. The Prospect and investor presentation are insightfully prepared, and a clear and impactful fact sheet containing the investment thesis and positive aspects of the instrument is developed.
Our client issues an original amount of 1 billion dollars, plus 200 million dollars from the exercise of the over-allotment option, with an IPO price 35% higher than the average valuation of its sector, and with an optimal participation of retail and institutional investors. The latter allowed the Company to maximize the liquidity of its shares, in parallel to developing an analyst coverage comprised of six institutions, which assigned investment recommendations of “strong buy”.