Earlier this year we shared the results from our inaugural Small-Cap Survey. Our final whitepaper with IR Magazine on small-cap company issues was influenced by the key finding that 70% of CEOs/CFOs at small-caps manage their IR internally, but they spend only 11% of their time on investor outreach. Given today’s competitive financial markets landscape, the ability of small and micro-cap companies to gain exposure and attract a targeted investor base is even more critical. Continue reading “Discover Small-Cap IR Best Practices to Attract Investors”
Earlier in 2017, The World Federation of Exchanges (WFE) released their report highlighting major barriers of entry to equity market financing for Small and Medium Enterprises (SMEs). In conjunction with a survey infrastructure supported by the Milken Institute, the WFE made three key recommendations to securities market regulators and exchanges:
- The complexity, cost and scale of listing, and maintaining a listing, should be reduced, to incentivize the use of equity markets by SMEs.
- The quality, not the quantity, of information available about SMEs should be enhanced. This includes information that SMEs disclose for regulatory compliance as well as that from third-parties.
- Mechanisms should be introduced to enhance secondary market liquidity in SME stocks and on SME markets, such as: dedicated market makers; expanding and diversifying the investor base; and exploring alternative secondary market trading models such as a quote-driven market.
When I read the WFE report, I couldn’t help but draw parallels between these findings and the unique public market framework we have built at OTC Markets Group to help smaller public companies succeed.
As part of this year’s NIRI conference, OTC Markets Group worked with the team to organize and moderate a panel of industry experts dedicated to addressing the needs of small cap IR professionals. Continue reading “5 Takeaways from our Small-Cap IR Summit”
For unique insight into the small cap companies trading on our markets, we recently engaged their C-suite to shed light upon some of the challenges they face when trying to drive and increase investor interest in their stock. Between March and May of 2017, OTC Markets Group Inc. conducted a survey of 117 CEOs and CFOs at the helm of the U.S. and international companies that trade on our OTCQX and OTCQB markets. The results of the inaugural Small-Cap Survey revealed that small-cap companies, traditionally defined as having a market capitalization of under $2 billion, are continuing to miss key opportunities to attract new investors and raise capital. Continue reading “Challenges Faced by Small-Caps: The Results are in…”
The high cost to complete an IPO onto a U.S. stock exchange – on average $2.5 million*, combined with the declining bank appetite for small-cap IPOs, is forcing many small companies to stay private longer. However, the public markets offer tremendous benefits for small-cap companies seeking to raise capital and grow their businesses. Fortunately, an IPO isn’t the only method for small companies to gain the benefits of a public market.
In our second whitepaper with IR Magazine, on Small-Cap company issues, we focus on three alternatives to the traditional IPO: Continue reading “Think an IPO is the only way to access the Public Markets?”
With more than 6,000 small and micro-cap companies trading on our markets, we are uniquely positioned to understand the issues they face, and help them effectively navigate the public markets. That’s why we’ve partnered with IR Magazine to develop a Small Cap IR whitepaper series that addresses the unique challenges in navigating the public markets, including high fees and changing market structure.
A successful public market experience starts with developing a well thought out IR strategy.
The most successful small-cap companies are those that employ certain public company best practices. For some issuers, this will require a fundamental examination of the business, its principals, goals and objectives, for others it will require getting the company’s financial house in order.
By David Collins, IR Magazine | Tackling the challenges faced by small and micro-cap companies.
Life as a small or micro-cap public company is getting harder by the day as the pool of buy-side interest is shrinking almost as fast as sell-side research, and sales and capital markets sponsorship is contracting. Accordingly, the ‘smicrocap’ IRO’s task of finding worthwhile targets to pitch and introduce to management also grows more challenging – and, unfortunately, the smaller you are, the harder your job has become.