By Michael Ferreter
Panelists:
Scott Einberger, Head of Investor Relations, Amrize
Evan Barbosa, Vice President, Investor Relations, Lineage
Moderator: Sarah Cluck, Vice President of Investor Relations, Aledade
KEY TAKEAWAYS
- Moderator Sarah Cluck opened by noting that most IR officers of newly public companies are hired three to 12 months before their initial public offering (IPO). Scott Einberger said he joined Amrize 12 months before the IPO, giving him time to learn the business before needing to be out in front of investors. He said one challenge was understanding the perceptions and pushbacks from Wall Street. Evan Barbosa, who was vice president of investor relations when his firm Lineage went public, said he had only three months before the IPO and had to ramp quickly. His challenge was needing to establish investor relations tools, such as a news release distribution provider and an earnings prep process.
- To build credibility, Barbosa said he leaned on investors who knew the company’s story well during management’s ”test the waters” meetings. Einberger described how he needed to obtain and then provide detail for analysts’ models. He also needed to articulate the company’s capital allocation strategy and clarify his company’s comp to peers.
- Both IR officers talked about the pricing process, including navigating the interest of many parties in the IPO, the desire of investors to find a fair entry point and the challenge of setting the reference price. They described the large amount of education required in an IPO, such as preparing a first-time public company CEO and aligning with the key internal audiences in finance and communications.