In December we completed our first conference call for a client in Zambia Zambeef plc.com. Here are a few insights:-
- Having an identified online investment community to which to advertise the event had a significant positive impact in ensuring wide institutional investor participation.
- Our online conference call software identified who was on the line, who wanted to ask a question, who had disconnected. When time ran out management was able to identify those investors whose questions had not been asked and contacted them later.
- Over 25 emerging market institutions participated and over two thirds of them remained online for the duration of the one-hour call. Retail shareholders could listen to the conference call live through our online investor relations software.
- The quality of the telephone connection was exceptional irrespective of the country investor location.
- The event was held at 5pm Central African Time to cater for the USA and European and African markets.
- The level of appreciation of investors participating was very high.
- The event was broadcast live through an AIC investor relations website for all retail and other investors to hear and within 12 hours a written transcript of the event was available for download.
- The audio of the event is available on the client website
Lots can go wrong but did not! Small, somewhat apparently arbitrary things can ruin a professional presentation and conference call – experience in these events is vital and a well-prepped CEO is must.
In future, I suspect that there is scope for many companies in Africa to scale back direct investor interaction in favour of more transparent events such as a conference call. Yes this is to manage disclosure risk, but I see it as an opportunity for listed companies to excel in investor communications. Higher transparency, equality and all those good things….
Our experience and that of other IR professionals has been written up into a guideline for our clients and future clients. All-in-all the experience was an eye opener for all and I expect conference calls will grow into a key tool for listed companies to bridge the communications gap effectively.
John Legat, CEO of Imara Asset Management, a pan African fund manager said of the event:-
“I thought it was excellent and well organized. I hope that other African companies can follow in Zambeef’s footsteps. Amazingly my Zim line was not cut off half way through which was a result.”
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