Financial Communications / Investor Relations

“It takes a newspaper to kill a fly and a bank”. The same holds true of a public company. Any manager of a financial institution and/or a public company knows this saying.

The truth is that financial institutions and public companies are brought to “trial” before their clients and investors every day. A great number of their “pleadings” are then communicated through the media.

And as it happens, at each appearance before the court, the smarter would use the services of lawyers, in that case - specialised communication consultants like us – the team of Grozdanov Communications Consulting. Exactly this is the essence of the services “Financial Communications” and “Investor Relations” that we offer.

There are three main peculiarities that bother non-specialised PR consultants in dealing with investor relations:

  • The matter is complicated and to understand and communicate it efficiently a background in economics and practical experience are required.
  • Contrary to the frivolous attitude to details that is typical for the media environment in Bulgaria, data accuracy is to be treated with extraordinary responsibility. The smallest error may cause significant financial damage.
  • Investors are quite special as an audience. They are smart, very cautious and distrustful. Most of them have an in-depth understanding of the business and are very critical towards the common skin-deep PR tricks. In this sense, any communication with them would require a comprehensive understanding of the subject, a very serious treatment of the messages sent, while having as much control as possible of the information released to the media.

The feature that distinguishes the Grozdanov Communications Consulting team from most media consultants in our country is the background in finance and economics, and most of all the unique experience in corporate communication of public companies, initial public offerings (IPO), communications of finance companies, financial and credit products, banks, etc. That is why we are one of the few companies specialized in the field of financial and investor communications.

Work with us will guarantee you cooperation with specialists that have in-depth knowledge and expertise in the sector, as well as experience regarding a broad range of problems that we may be required to resolve jointly with our clients. In all our practice areas we adhere to the highest ethical and professional standards and comply with market transparency requirements.

A well planned and targeted campaign generated anticipation among the investment community and the media about the forthcoming IPO of FIB’s shares

 


 


The top managers of FIB presented the emission to investors and journalists and answered their numerous questions


 


 


As result, FIB’s IPO was one of the most successful in the history of the BSE. The bank raised BGN 176,55 million in exchange of 15% of its capital. Orders estimated at BGN 1,317 billion were submitted in the booking period, exceeding nearly 6 times the offered quantity of 16,5 million shares

 


Industrial Holding Bulgaria raised its capital successfully with BGN 42 million in December 2007. The emission’s goal was to provide financing for various projects of holding’s subsidiaries. Company’s CEO Daneta Zheleva initiated series of communication appearances in order the present to the investors the projects’ business potential.


The Bulgarian digital print leader Billboard JSC raised BGN 10,95 million with almost 14 times oversubscription in the end of the most competitive for the investors’ money 2007. The emission was catalyzed by a series of management statements addressed to the potential investors

SPECIFIC SERVICES

- Ongoing investor relations – fund-raising communication

Media communication with investors, minority shareholders, bondholders and holders of other securities, debt analysts and rating agencies is as important as direct relations with them.

Our team offers ongoing relations with these audiences and communication programmes, whose purpose is to enhance the investment image of the company and thus impact favourably on its securities’ assessment and liquidity.

Our services are also used by companies subject to credit rating in the course of evaluation and public disclosure of the final result.

Our team has experience in the long-standing communication with the mentioned stakeholders of one of the biggest companies listed at the Bulgarian Stock Exchange – Petrol AD. With our responsible and efficient work we have supported the successful implementation of a number of projects and events such as:

  • Issuance of bonds;
  • Sale of subsidiary companies and assets;
  • In-company restructuring;
  • General assemblies of shareholders and changes in the managing bodies etc.
  • Initial public offering (IPO) and fund-raising

“I do not invest in a company, but in its management”. Most investors tend to reason in that way and therefore they follow even the minutest media appearance of managers of public companies and those for which IPOs are forthcoming. Not only do they follow each word, but also they try to read between the lines in an attempt to get more information that would justify their investment decision. However, the regulatory bodies do the same...

Our team helps clients expecting an IPO to formulate efficient messages and to forward them to investors in an accurate, proper and credible manner. The key element in that type of communication is to have a grip on the information released and we use a set of internationally proven techniques to overcome the lack of depth and negligence of detail typical of some media. Thus we prevent the appearance of “distorted” or downright false publications that might impair the outcome of the forthcoming IPO, fail it, or result in administrative conflicts with the regulatory bodies such as the Financial Supervision Commission. Actually all initial offerings that we have handled have been carried out successfully and have achieved excellent results.

In the course of preparation and implementation of the communication strategy we work as a part of the team carrying out the planned IPO – the lead manager, the investment and legal consultants, the investor relations director (if any), etc. Working in close coordination with them, we carry out the following key steps for the successful project communication:

  • Development of a company’s strong business and investment story;
  • Communication strategy;
  • Training and preparation of the managers in order to articulate the key messages clearly through the media;
  • Preparation and implementation of a range of modern communication techniques to promote the story in a credible manner, such as: series of presentations (i.e. “road shows”), briefings, interviews and reviews, third party endorsements, and even discussions in investment forums, enquiries, stakeholder polls, blogs etc.

Our team has worked to support the following projects meet their objectives:

  • The largest IPO in the history of the BSE  – that of First Investment Bank in 2007;
  • IPO of Billboard AD, capital increase of Industrial Holding Bulgaria AD
  • Communication of bond emissions of one of the biggest companies of BSE – Petrol AD, the sale of Eurobank AD to Piraeus Bank etc.

- Mergers and acquisitions (M&A) / Corporate restructuring

A huge number of corporate mergers and acquisitions fail either partially or fully, and corporate culture and communications are among the biggest failure / success factors.

Companies that are undergoing corporate and financial restructuring need the indispensable support of their stakeholders and, more often than not, such a support requires getting to trade-offs through efficient communication.

Our team is able to devise and implement for our clients strategies that achieve efficient communication in an environment featuring competing interests of various groups of people such as: employees and trade unions, clients, suppliers, investors, creditors, political and regulatory officials, the media etc.

Our service can be applied in different change processes such as: mergers and acquisitions, bankruptcy, debt and equity markets, fraud and investigation, risk management, litigation, regulatory and political advice, crisis management and business consulting.

When implementing large international projects we pull together teams of leading specialists in the area of cross-border mergers and acquisitions, who take an early and active role working alongside with the management, legal, investment and other company advisors. That allows us to plan and execute communications in the best possible way in a difficult, vulnerable and highly regulated environment.