Regulations increase need of IPO comms assistance

NEW YORK: Companies looking to list publicly in the US are in need of assistance from communications firms now more than ever, according to a KCSA Strategic Communications study.

NEW YORK: Companies looking to list publicly in the US are in need of assistance from communications firms now more than ever, according to a KCSA Strategic Communications study.

The study found that 71% of respondents think the US is losing its share of global IPOs.

The reason, said KCSA CEO Jeff Corbin, is an increasingly restrictive regulatory environment in the US is pushing foreign companies to list on their home exchange.

The study surveyed 50 securities attorneys whose firms advised on 75% of IPO offerings listed on major US exchanges in 2010.

For communications firms, it is important to work with companies to do pre-IPO work to explain what it means to become a public company as well as outline communications after the IPO, Corbin said.

Lewis Goldberg, managing partner at KCSA, added that clients need to understand how messages are delivered is now more important than ever.

“You can't just communicate on a quarterly basis. You have to enlist transparent communication on a regular basis and that is a very hard lesson for international companies to learn,” Goldberg added.

Looking ahead, 100% of respondents said that China will be a strong drive of US-based IPO issuance in 2011.  Thirty-seven percent said Brazil will also drive IPO issuance and 30% said issuance will come from India.

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