conference attendance falling, Nasdaq says
Apr 22, 2019
Two thirds of all
in-person investor meetings happen outside of conferences, according
to Nasdaq IR Solutions data
When Mifid II came into effect last January it caused a significant
disruption of the investor marketing landscape, with the largest
public companies in the world participating in two or three fewer
conferences in 2018 than in the previous year, according to data from
Nasdaq IR Insight.
average, mega-cap companies participated in 12 conferences in 2018,
large caps participated in nine, mid-caps participated in seven and
small caps participated in five, the research states. For both mega-
and large-caps, this represented an average fall in attendance of two
to three conferences, while the number was flat for mid and
data comes from an analysis by Nasdaq of the 400,000 investor
interactions it tracks through its IR Insight platform.
Stiller, co-head of strategic capital intelligence at Nasdaq IR
Intelligence, says issuers have commented on a decline in conference
quality since Mifid II came into effect. ‘We talk to clients who say
they’re getting less out of conferences than they used to,’ Stiller
tells IR Magazine. ‘It comes down to who is in the room.
Clients tell us that they see a lot of the same people over and over
again. The onus is on IR teams to find new people to talk to.’
Although large public companies can afford to attend fewer conferences
because they have a large number of analysts covering their stock and
don’t want for marketing opportunities, Stiller suggests that mid- and
small-caps need to make the most of all marketing opportunities
available to them.
‘Small- and mid-caps have to find any possible way to tell their
story,’ he says. ‘They will take any opportunity to go to an event to
get out in front of investors.’
separate analysis from Rose & Co in December 2018 found that the
number of sell-side conferences announced for
Q1 2019 was 17 percent
lower than in Q1 2018.
According to Nasdaq’s analysis of its own data, investor marketing is
as consistent and concerted as previous years, but two thirds of all
in-person investor meetings are happening outside of sell-side
Stiller says this is down to an uptick in direct engagement. He adds
that he has observed an increase in IROs with a sell-side or financial
planning and analysis background – individuals who may have
a more intimate
knowledge of how the buy side works.
‘There are new people in the IR seat, and they know how the machine
works,’ Stiller says. ‘They know how the sell side operates, but they
also know the key accounts on the buy side and the people to talk to
in their sector.’
better understand investor targeting, Stiller and his team analyzed
how much time is spent engaging with existing versus prospective
holders. Large-cap companies spend an average of 55 percent of their
outreach with prospective shareholders on average, while mid caps
spend 67 percent and small caps spend 77 percent of their time on
targeting potential new investors.
takes, on average, two meetings over two quarters to bring in a new
investor, according to Nasdaq’s analysis. Management must be present
during at least one of those meetings, it states. Although meeting
with more selective prospective investors can be time consuming,
Stiller says that it can be worth it to the IR team. For investors
that took five meetings before entering the stock, that average
investment is close to an average of $140 mn.
Topics that IR teams have historically sought guidance from the sell
side on are understanding how many meetings it may take for an
investor to take a position, or who should attend those meetings. But
Stiller says that in the future, digitally-savvy IROs will be able to
find this information through providers such as Nasdaq and its peers.
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