For years, national capital market agents have missed the presence of American investors. Several reasons have been pointed out for this apparent disinterest. The European markets, especially the Spanish one, have smaller sizes. The retail sections have disappeared and the low liquidity means that the possible exit windows in the medium / long term could be a problem. So much suspicion has prevailed, and explains the reversal of some recent operations. There are two obvious formulas to reverse it. The first, to reawaken their interest in companies that are listed or intend to do so in Spain. The second, take Spanish companies to their own market and get them listed in the United States. They are not so antagonistic or difficult options.
It is evident that the landscape of public subscription offerings has changed substantially in recent years. Regulatory milestones, distrust among investors impacted by geopolitical instability and the growing attractiveness of alternative destinations coincide. So many new developments have brought bad news and good news. The bad thing is the greater complexity. The good news is that the combined influence of communication, public relations and marketing has managed to become decisive in reaching port with a certain amount of peace of mind.
There are many reasons that lead companies to focus their attention on investors from the United States. To begin with, they are more accustomed to a stable market, with greater growth potential and resistance to volatility. They give greater weight to technology and innovation; Wherever they go, they ensure a larger investor base and higher valuations. In fact, when they appear things are also easier after departure. That is why they are sought so hard in the Spanish market.
There are no master formulas, but any effective strategy requires that these investors feel at home. Whether you opt for the Spanish or the American exit, financial preparation ‘in your style’ is crucial.
Also build alliances with interested parties, resolve the dialogue with regulators and ensure optimal positioning and rationale before investors and the market as a whole. Having comparables in the market, providing constant information on the competition and market trends there or here is also essential.
The details are often even more difficult. It is advisable to have specific and independent advice; provides immediate returns. It is also important to synchronize with the right underwriters. They represent the best connection to North American investors interested in long-term returns, which leads to a stimulating supplement to valuations.
The expected market capitalization and the final price are also decisive issues. Paying attention to capitalization and laying the foundation for long-term shareholder loyalty are laborious strategies, but their results are usually worth it. A useful tip is to take the free float of the operation to the maximum reasonable, and assess in advance what repercussions each decision will have before the regulator, including the requirements that will have to be resolved.
Likewise, relations with investors will require principles of communication and extreme transparency. Direct and recurring treatment is expected with the CEOs and financial directors of Spanish companies. We are facing exhaustive work where advice, proximity and communication will make fluid and sustainable two-way relationships easier over time. An essential path to ensure the success of an IPO on this or the other side of the Atlantic.