"EASTERN MONEY". July 15, 2014. - Presentation 04: Instinctif Partners
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Transcript of "EASTERN MONEY". July 15, 2014. - Presentation 04: Instinctif Partners
Leaders in IPO
Communications
Financial communications in Greater China and Singapore
15 July 2014
Leonid Fink and Uhi Hui
2
We are…
ADVICE AND
COUNSEL TO
+700
COMPANIES
17 FTSE
EUROTOP 300
COMPANIES
OPERATING
FROM 20
OFFICES
ACROSS
12 COUNTRIES
42
CONSTITUENTS
OF THE FTSE
350
400 STRONG
TEAM
LEADING
INDUSTRY
SECTOR
DESKS
8 IPOs FROM
RUSSIA/CIS
OVER THE PAST
4 YEARS ALONE
3
International presence
Almaty
Owned offices Affiliates
Office locations: London, Manchester, Oxford, Reading, Edinburgh, Dublin, Frankfurt, Cologne, Munich,
Brussels, Moscow, New York,, Johannesburg, Delhi, Dubai, Hong Kong, Beijing, Shanghai, Singapore,
Sydney,
Affiliates: Amsterdam, Paris, Berlin, Madrid, Rome, Warsaw, Baku, Almaty, Sao Paulo, Lagos, Seoul
Deep bank of IPO experience
US$4.3bn IPO and listing
in London and Moscow of
one of the largest
retail chains in Russia
£1.2bn London IPO of the online retailer in 2014
US$2.4bn IPO in
London and Almaty of
Kazakhstan’s largest
mobile telecom
£390mn London IPO of the UK’s largest and fastest growing consumer debt
purchasers and providers of receivables management
solutions in 2013
£3.6bn premium listing and inclusion into the FTSE 100 of a Russian gold and silver
mining company
US$18bn listing on the LSE of the operator of
Russia’s electricity transmission system
US$1.2 billion IPO of
Russian state-owned
rail cargo business in
2010
Privatisation and IPO on
Warsaw Stock Exchange
of CEE’s leading stock
exchange
US$1.8bn premium listing on the LSE of Kazakhstan’s
largest independent oil & gas producer
US$8.1bn privatisation and public offering of the largest diamond producer
in Moscow
A selection of Russia & the CIS expertise
Financial public
relations and IR for IPO
raising $1bn
IPO and retained
London financial
communications support
Ongoing financial
communications
support, media relations
programme, strategic
advice
Retained investor
relations and corporate
communications support
since 2005
International launch of
the company: media
relations, website and
strategic advice
International listing in
2011 and media
relations
Investor relations and
corporate
communications support
$4.3bn IPO and listing
in London and Moscow.
SPO on the London
Stock Exchange. On-
going corporate
reporting
Retained investor
relations consultants
since 2010
Investor relations
consultants Capital markets
engagement
programme
$8.1bn public offering of
the largest diamond
producer in Moscow
Disposal and IPO of
Stillwater Mining in
Montana,
communications support
to the share buy-back
programme
International IPO,
ongoing investor
relations and
international media
support
Financial
communications, media
relations support
Ongoing financial
comms advice, strategic
advice around M&A and
internal communications
Ongoing international
communications and
advice on all aspects of
corporate positioning
7
Fundraising Case – Team Experience
The First Institutionalized Angel Investment Forum in China 2012
8
Your team in Hong Kong
Uhi Hui is founder & CEO of Instinctif’s office in Hong Kong, Beijing and Shanghai to local and multinational clients,
including Global and Fortune 500 companies. The offices have been recognized and rewarded with a string of local and
regional award-winning campaigns.
Born in Hong Kong and having studied abroad, Uhi started her career as a columnist for a leading Chinese daily. She
graduated in journalism from the University of Wisconsin in Madison, USA, and is trilingual, being fluent in English,
Mandarin/Cantonese and conversational French.
Rena is experienced in corporate communications, strategic media relations, brand and reputation management,
social media management in international PR agencies. She has worked for Instinctif (formerly known as PR People
Consultancy) for over 7 years. As a team leader, Rena always provides strategic counseling to various clients and
actively contributes to new business pitching for the company.
Ding’s expertise includes stakeholders (government, policy makers, business, academia, community, NGO)
mapping, partner identification, due diligence, regulatory research and analysis, engagement and perception audit,
crisis management and corporate social responsibilities (CSR) programming.
Ding is a qualified PRC lawyer and has worked on numerous M&A, IPO and government relations projects. She also
holds a position at InvestHK, a Hong Kong government department promoting Hong Kong as a business location.
Ding Hong
Uhi Hui
Rena Wang
9
Erica is experienced in public relations, advertising and integrated marketing communications of the high-tech and ICT
industries. She has accumulated abundant experiences and incisive industry insights to corporate communication,
strategic media relations management and brand planning.
Erica Jiang holds an M.A. degree in International Journalism and a B.A. (Hons) in International Business
Communications from the University of Westminster.
Having led over 10 IPO projects and serving over 20 listed companies in Greater China, Sheila is a veteran of public
relations. She has worked in both agency and in-house, and is therefore perfectly placed to understands needs from
the client’s perspective.
Sheila started her career in public relations agency mainly engaged in the financial field and was in charge of both the
Hong Kong and Shanghai offices for a financial PR agency which mainly engaged in capital markets and corporate
communications, prior to re-joining Instinctif. She also worked in a HKEX listed company to oversee the corporate
communications and marketing department.
Erica Jiang
Sheila Chow
Your team in Hong Kong
10
Challenges in building
profile of Russian
companies in Greater China
and Singapore
11
Deng Xiaoping
Qian Qichen
Li Peng Jiang Zhemin
Li Lanqing
12
SE Asia Top 3 OFDI
In 2012, OFDIs in China, Hong Kong and Singapore rank the top three in
Southeast Asia.
0 10 20 30 40 50 60 70 80 90 100
Malaysia
Singapore
Hong Kong
China
FDI Outflow
2012 2011
FDI Flows, Top 4 OFDI, 2011 – 2012
(Billions of dollars)
Other countries: Indonesia, Malaysia, Thailand, Vietnam, Philippines, Myanmar, Cambodia, Brunei, etc.
Source: World Investment Report 2013: Global Value Chains: Investment an Trade for Development
13
IPO in HKEX / SGX
2012
HKEX SGX
Global Ranking (by market capitalization) By end of March 2014
2 (in Asia) /
No. of Listed Companies 1,368 776
Total Market Capitalization (HK$ bn)
21,871 5,967
Source: World Federation of Exchanges (WFE): Market Capitalization of the World's Top Stock Exchanges (As at end Mar 2014) Hong Kong Stock Exchange Fact Book 2013 Singapore Exchange, by ICB Classification (December 2013)
14
Perception of Russian Companies - China
In recent years, Chinese investment in Russia has been
increasing and the overall trend is positive. The energy,
infrastructure and consumption sectors have great potential.
However, Russian companies keep a low profile; we would like to
learn more.
China Business News
There’s a correlation in economy and trade between China and Russia,
thus the market prospect is considerable. For Chinese investors, the two
biggest concerns are trust and corporate governance. Therefore,
corporate profiling and information transparency are very important.
International
Business Daily
15
Perception of Russian Companies – Hong Kong
Russian companies have a low profile in Hong Kong
and liquidity of their shares is low. We think it would be
great if transparency of Russian companies can be
increased and are interested in working with them.
BOCOM (Bank of
Communications)
International Securities
Limited
Russia has huge amount of natural resources; its
economic growth should be positive. Also its trading
relationship with NE China is a good sign indicating
the increasing investment in Russia.
Infocast.com.hk
16
Perception of Russian Companies – Singapore
Gazprom listing its GDRs on the SGX allows
greater access to Asian investors. We would
welcome more opportunities like this in future.
From an
Investment Banker
17
Asian INVESTORS
Pragmatic
Welcome Opportunities
Quick / High Return
Business Oriented
18
Stereotypes
• Russians love vodka
• Bureaucratic
• Russian companies are
complicated to deal with
• Corruption and poor
corporate governance
Offers
• Established US$10B RDIF
• No. 3 in attracting FDI
globally
• Fast-growing sectors
• Attractive domestic market
• With state support
• Investment opportunities in
different fields
• Very positive attitudes
towards Asian investors
19
• GENERATE AWARENESS • BUILD UP VISIBILITY • CREATE UNDERSTANDING
20
China is the largest media market and online population • 2 National wires
• 2,200+ newspapers and more than 40
newspaper groups
• 9,500+ magazines
• 2,000+ TV companies (3,000+ channels)
• 300+ radio stations
• 3.3 million websites, online population reaches 564 million, access through mobile phones surpasses PCs
Media Landscape - China
21
Party Newspapers
Financial TV
Financial Daily Newspapers
(Designated by the China Securities Regulatory Commission to disclose information on listed companies )
Business Newspapers
Media Landscape – China (cont’)
People’s Daily Guangming Daily Economic Daily
Securities Times
22
Online Financial Media
Financial BBS
(Bulletin Board System)
Social Media
Financial Bloggers
Media Landscape – China (cont’)
Ye Tan Niu Wenxin Liu Jipeng Tao Dong Kai Ensi Xu Xiaoming
Netease
23
Media Landscape – China (cont’)
• The majority of journalists in China use Chinese only
• Personal relations (Guanxi) is helpful for communication
• Local journalists support international business but to some extent with
nationalist and protectionist sentiments • Highlighting the advantage to local markets and following the overall government
orientation will be helpful.
• Traditional vs. Social - Traditional financial and business media are still
considered as the authoritative channel but social media is a complementing
platform for the release of information (including by the government)
• MNCs are often singled out for criticism over product safety, service quality,
labor issues, etc. • Transparent and effective communications are important
• Media of first-tier, second-tier and third-tier cities are different
24
China Media Handling Tips
DO:
• Create a Chinese company name
• Ensure your translation is being done correctly (China uses simplified
Chinese vs traditional Chinese)
• Be humble, polite and professional
• Media tour is very welcomed
AVOID:
• Multi contacts in one media
• Last minute change
• Arrangements during the weekend, holidays or early morning
• Political and religious topics
25
Yes or No?
Yes, if targeting state-owned enterprises or big amount of investment
• NDRC (formerly the National Planning Commission)
• E.G. Dept of Foreign Capital and Overseas Investment (a unit of NDRC)
• Ministry of Commerce (MOFCOM)
• E.G. Dept of Outward Investment and Economic Cooperation (part of
MOFCOM)
• The State-owned Assets Supervision and Administration Commission
(SASAC)
• The State Administration of Foreign Exchange (SAFE)
Provincial officials (Approval for less than US.3M)
Government Relations in China
26
Hong Kong
International /
Infrastructure / Efficient
Transparent / Independent
Judiciary
Famous for its Financial Capability
Offshore RMB Centre
Sustained Growth in Fund Mgt
Sector
Hong Kong - Gateway to China’s OFDI
27
Media Landscape – Hong Kong
• As an international city, Hong Kong reporters speak fluent English as well as Mandarin
• Local journalists look closely at matters regarding China, and also
broadly cover international business news
• Many regional financial media have set up offices in Hong Kong, e.g.,
Bloomberg, Thomson Reuters, CNN, BBC, etc.
• Online media (providing real-time information) and news apps (better
fulfilling demand on “reading anytime anywhere”) are more popular
and important than traditional media for stock news and updates.
28
Financial Daily Newspapers
Online Financial Media
Financial TV
General Media
Media Landscape – Hong Kong (cont’)
29
Media Landscape – Singapore
• Media prefer briefings with factual content
• Dailies are owned by Singapore Press Holdings and one Mediacorp: • Main business daily is Business Times
• Other dailies have business sections but focused on businesses which
have a Singapore base or connection generally
• Other key business are broadcast: BBC has Asia Business Report and
CNBC
• News agencies such as Bloomberg, Dow, Reuters, AP all have offices
in Singapore
• Business news feeds are mainly through the wires
• The Edge, a business magazine, focuses on listed companies
30
Financial TV
News Agency
Financial Daily Newspapers
Business Magazine
Top 3 General Daily Newspapers Media Landscape – Singapore
31
All in all…
Get public money or not:
• Well-thought and elegantly executed narrative to get a good start
• Good intelligence from both investors and analysts of what they want
from new companies
• Important to get the story right to the market to generate positive
interest in your equity story over the medium and long term
If you do not / cannot talk about figures:
• Corporate profiling of your company or management
• Create awareness, understanding as well as transparency
• Finally trust will be built
32
SE Asia will be investing
in the Modern Russia!
33
Fund Raising
B2B Matching Online Interactive
Media
Crisis and Issue
Management
Speaking
Opportunities
Media Relations
Investor Roadshow
Government
Relations
Expert
Consultation
Channels to Attract Potential Investment
34
HKEX - Depositary Receipts (HDRs) SGX - Global Depositary Receipts (GDRs)
Current listing:
• Vale Common - DRS (6210)
• Vale Pref – DRS (6230)
• Fast Retail – DRS (6288)
• Coach –DRS – RS (6388)
Current listing:
• GDR Accentia US$ S
• GDR BombayRayon US$S
• GDR Confidence US$ S
• GDR DoosanInfraUS$ A
• GDR DoosanInfraUS$ R
• GDR Hanwha Chem US$ A
• GDR Hanwha Chem US$ R
• GDR JSC
• GDR Gazprom US$S
• GDR K.S.Oils US$ S
• GDR Karuturi US$ S
• GDR Kolao Hldg US$S
• GDR OCI US$ A
• GDR OCI US$ R
• GDR Visesh US$ S
• GDR Welspun US$ S
• GDR Youngone US$ S
Listed on Mainboard Listed on Mainboard / Catgalist
Primary listing on another exchange which must
be maintained No requirement for existing listing
Depositary Receipts