The Challenge:
After several years of PE-backed ownership, our client became an overnight high value asset with the arrival of COVID-19, and its owners felt it was time to cash in. Further complicating matters for a company with no true peer group, the PE firm would retain nearly 50% ownership after the public offering which created a significant overhang before the first trade crossed. Given the unprecedented circumstances of executing an initial public offering (IPO) while COVID-19 took hold, Alpha was brought into the fold six months ahead of the planned listing to drive the investor relations and corporate communications functions.
Alpha’s Solution:
- The Alpha team coordinated directly with the chosen exchange to understand what could be done in such unique circumstances and subsequently developed a customized week-by-week workback plan that accounted for 20 different work streams.
- With early indications of more than 10 sell-side firms likely initiating coverage, Alpha worked closely with the CFO, internal finance team, and underwriters to host an Analyst Day three months prior to the listing to explain the business, the financials, market complexities, and opportunities.
- Serving as the ‘central command’ for listing day, Alpha managed multiple internal teams at the client to ensure continuity of messaging, collateral development, and media engagement.
- Further, Alpha built the framework for a best practices IR program that was activated the first day of listing, which included:
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- Earnings workback plans and draft materials
- IR website buildout instructions
- Investor presentation and IR factsheet
- Practice Q&A
- Conference invitations
- Vendor management
- Supporting the drafting of the MD&A in its first 10-Q filing.
Results:
- The company went public with all the traditional fanfare of the opening bell, media interviews across leading print and TV outlets, and celebratory remarks.
- As expected, the remaining ownership of the PE firm gave investors some pause and Alpha worked over the next several quarters to highlight the growing momentum of the business to overcome these initial concerns.
- With a customized and established IR function in place from day one, Alpha served as the client’s IR partner for several quarters following the listing. Alpha continued to provide counsel to the CFO and later hired in-house IR function, on both a project and later retainer-basis.
