{"id":1841,"date":"2022-12-17T20:38:00","date_gmt":"2022-12-17T19:38:00","guid":{"rendered":"http:\/\/hear-ir.com\/?p=1841"},"modified":"2025-08-26T15:53:34","modified_gmt":"2025-08-26T13:53:34","slug":"ir-blog-how-to-get-the-investment-case-right-if-you-are-a-small-listed-company","status":"publish","type":"post","link":"https:\/\/hear-ir.com\/it\/ir-blog-how-to-get-the-investment-case-right-if-you-are-a-small-listed-company\/","title":{"rendered":"IR Blog: HOW TO GET THE INVESTMENT CASE RIGHT.. IF YOU ARE A SMALL LISTED COMPANY"},"content":{"rendered":"

From: IR FOR SMALL CAPS – IR\u00a0 Society is focused on providing advice and help smaller cap companies <\/em><\/p>\n

Small cap companies are a key element of efficient capital markets, providing the diversity for balanced capital allocation for tomorrow\u2019s mid and large caps. However with limited IR resource and limited advisory support \u2013 often as a result of low transactional or trading income to support advisory services \u2013 the changes occurring as a result of MiFID II risk swamping the benefits of being on the capital markets.<\/h3>\n

<\/h2>\n

Smaller listed companies need to explain why investors should be interested in their business<\/strong><\/h2>\n
\n

An investment case is an integral part of any company\u2019s communications, even more so for small caps and EGM listed companies.<\/p>\n<\/blockquote>\n

With changes in the market environment taking place under MiFID II, corporates and IROs for smaller listed companies have even before a greater responsibility to ensure a clear understanding of the business.<\/p>\n

Consequently, the investment case should be used as a clear pitch, with dedicated content to explain how a company differs from the competition and why investors would profit from investing.<\/p>\n

\u00a0<\/em><\/p>\n

\n

\"\"<\/h2>\n<\/blockquote>\n

<\/h2>\n
\n

A smooth sea, never made a skilful sailor<\/h2>\n<\/blockquote>\n

Investment cases are on the rise –\u00a0<\/strong>With the increasing obligation to stand out from the crowd and demonstrate the company\u2019s key strengths, the overall trend has been that of an increase in the number of investment cases, both in the annual report and on the corporate website.<\/em><\/p>\n

Corporates are choosing to put their investment cases online – Particularly in the face of MiFID II, it is more common for companies to have an investment case featured on their corporate website.<\/strong><\/p>\n

However, out of the companies that did have an investment case on both their corporate website, company presentation and in their annual report, only a small number made these consistent.<\/p>\n

Many companies instead highlighted different reasons to invest on each channel and used more data on one or the other. Also, a very small number of these companies included an investment case in their most recent investor presentation.<\/p>\n

The investment case should be used as a clear pitch, with\u00a0dedicated content to explain how a company differs from the competition and from similar stocks<\/p>\n

Key areas of focus include<\/em>:<\/strong><\/p>\n

    \n
  1. Reasons and content<\/strong> \u2013 what should your investment case focus on and what is most relevant to your industry?<\/li>\n
  2. Text and data<\/strong> \u2013 what information can be provided to best support your investment case and how should this text and data be presented to be most effective?<\/li>\n
  3. Location<\/strong> \u2013 depending on your audience, where should the investment case be placed both in the annual report and on the corporate website to best influence how many people view it?<\/li>\n
  4. Engagement <\/strong>\u2013 it is important that an investment case engages the investors and drives them to further information.<\/li>\n<\/ol>\n

    \u00a0<\/strong><\/p>\n

    What good looks like – How companies can build a best practice investment case:<\/strong><\/p>\n