5.1. Leverage the opportunities created

5.1.1. Optimize growth opportunities with the new tools at hand

After a successful listing process, the Company may enhance its ability to fund and increase its notoriety through the capital markets. Furthermore, additional communication tools and channels will be available, notably for the purpose of building the Company´s image, including in ESG matters. 

The proceeds of the Offering are usually used to leverage the development of the Company’s strategy and business plan, which, in turn, can largely rely on:

A company with securities admitted to trading will have much easier access to the funding needed to put in place the initiatives above, not only at initial offers, but also afterwards through secondary offers. Streamlining access to funding from capital markets generally enables the company to raise money in a less costly and more efficient way, with more options and flexibility in the sources of financing.

Please also note that shares listed on the stock market are usually considered more liquid than other assets, and accepted as collateral to other financing operations, which, in turn, might represent an interesting feature to the shareholders/bondholders.

Additionally, companies with shares admitted to trading on a regulated market tend to access in an easier manner to bond issuance financing, as they are already subject to general rules applicable to bonds admitted to trading and do not have to fulfill the Financial autonomy ratio law required by the Companies Code for the issuance of bonds.

5.1.2. Managing Investor Relations and communications

After the IPO/bond offering, it is important to keep investors updated on the company’s evolution and interested in its development. Accountability must integrate the Company’s culture, as keys elements for success.

The IPO/bond offering process will raise interest about the Company in the media and among investors and stakeholders (e.g. clients, suppliers, etc.). Investor relations ensure regular and insightful communication and news flow with the market, helping to maintain investor´s confidence.

Depending on the type of transactions (IPO or debt) and size of the Company, the investor relations can be maintained by a high level employee (which may simultaneous perform other functions in the company) or by a specialized team for the purpose. For example, a Company that has only bonds admitted to trading tend to be less demanded by the market and the investors.  

In case the shares or bonds are admitted to trading in the regulated market, the Company must appoint a contact person to ensure smooth and quick interactions with CMVM when needed or required.

What are the goals of Investor Relations?

The main goals of investor relations are (depending on the type of securities issued and size of the Company):