An IPO (Initial Public Offering) presents challenges and opportunities with respect to the corporate brand. It is one of the times that media coverage is pretty much guaranteed. The challenge is to ensure that the brand fundamentals and key messaging are well defined, tested and validated, not just against its ‘market context’, but also what is being said in the prospectus. The CMO needs to influence this and review the brand fundamentals in light of it. The risks are high and rules tight (varying on the listing exchange), but there is still an opportunity to raise profile, manage impact and enhance the overall brand.
The critical factors are: brand fundamentals; refinement and messaging; and impact execution. Overall, the most important lesson is not to leave the brand until the end of the IPO process. It must be reviewed and discussed upfront.
Make the most of your IPO An IPO provides the opportunity to build and develop a brand, to inject enhanced value, understanding and ultimately benefit. So it deserves a place at the top table from the outset.
The following guide will help you to make the most of your IPO.
1. Brand proposition. Businesses need to ensure that the brand proposition, values and core positioning are well defined, tested and validated. The benefit of perception audits, brand analysis, competitive benchmarking and a formal objective review of the brand fundamentals not only secures and defines the core brand proposition, tone and value of the business, but also ensures that there is consistency right from the beginning.
2. Active influencing. The CMO needs to be able to actively influence the total IPO process and to specifically drive/review the brand fundamentals in-light of it. He, or the corporate communications director, will also have to fight for a share of voice, for as far as most advisors are concerned ‘brand’ (certainly in the non-FMCG sectors) doesn’t have a priority or even the right to sit at the table during the IPO process.
3. Governance. There are strict rules governing the IPO process, covering things such as information consistency and accountability particularly with the prospectus and timing of communications around quiet periods. For example, from 20 August 2007, all AIM (Alternative Investment Market) listed companies must comply with a new rule change, ‘AIM Rules for Nominated Advisors’, which requires all AIM companies to maintain a website and disclose on it the names of the core management team, financial information and admission documents.
4. Timing. Don’t leave the brand until the end of the process. It must be discussed upfront. A degree of tenacity may be required as the advisors will not be focusing on the brand – their objective is to get the flotation away.
Therefore, it must be placed firmly on the agenda from day one. This will ensure they understand your needs and thebrand strategy can be developed from a position of insight and positive support.
5. Data quality. One of the most important aspects of an IPO is getting and keeping the information right – this equally applies to the brand as it does to all other financial and operational metrics. The development, creation and refinement of primary and secondary messaging can then be achieved based on real and tangible market insight and not simply internal and, in some cases, anecdotally accrued views.
6. Leveraging the event. Creating IPO impact will be influenced and governed by the individual exchanges and whilst there are closed periods and limits on how, what and when, there is always something that can be done to leverage off the event.
7. Communications strategy planning. There needs to be a set of brand objectives defined at the beginning of the process. From these, the brand and communications strategy can be developed. This will cover all areas including the listing day itself. It is important to allow enough time to gain approval for all of the on and off exchange activities you want to do. This includes the relevant Exchange and the key advisors who will need to be ‘sold to’ in many cases.
8. Sense of scale. There are a range of marketing initiatives that can be undertaken. Decide which activities best fit and deliver the required impact and ROI. The scale, size and type of communications campaign can then be identified, whether its using print and online media channels or an event at the Exchange. Whilst the focus is external, it is critical to include staff so they are directly involved. There are a number of ways to achieve this, from live video links from the exchange through to office based events and presentations.
9. Critical success factors. There are three key areas. Firstly, making sure the brand fundamentals are right and aligned with the prospectus. Secondly, to use the IPO process to review and refine the core primary and secondary messaging.Thirdly, to plan and consider what impact and communications activities you want and how you can best implement them.
10. Risk management. It is important that the advisors are fully informed and consulted, but also that there is a strong degree of determination. Don’t be fobbed off with initial ‘can’t be done’, because it can.
An IPO is too good a brand platform for a business not to exploit and therefore maximizing brand equity as well as the overall corporate equity. The risks need to be managed and the rules adhered to, but there is still an opportunity to raise profile, manage the impact and enhance the brand through an IPO.
