Initial Public Offering on the Warsaw Stock Exchange (WSE)
Profile
eCard S.A. is an innovative e-finance company focused on delivering integrated electronic payments solutions encompassing payment cards as well as ePayments (bank paybuttons). Headquartered in Warsaw, Poland, the company facilitates in the processing and provision of electronic payments services. eCard's technology, products and services are of the highest quality, meeting the requirements of international payments organizations such as Visa, MasterCard and American Express. The company has a share capital of 24 million PLN and acts as a clearing and settlements agent according to the Polish Law.
Issues
eCard is no. 1 in settlements of Internet payments in Poland. It holds around 90% market share. Still the industry, although develops dynamically, does not guarantee profitable business model now. Hence the company has to look for other sources of revenue, complementary to its core business.
Objectives
Our objective was to position eCard’s PLN 10 million initial public stock offering on the Warsaw Stock Exchange. The transaction was to cover institutional and retail investors. Moreover, the objective was to focus the perceptions on the company as a high potential stock. We managed this position with audiences including national business media, institutional and retail investors, internal audiences, Poland’s officials and financial community.
Strategies
Position the IPO as a strategic move aimed at, first of all, building &improving company’s credibility among its clients and business partners, fueling growth in complementary business areas and making the company better able to deliver shareholder value in long-term perspective.
Execution
eCard initiated an IPO program with a goal to list the company at the WSE regardless of the share price investors would declare ready to pay. They used the listing as an event to broadly introduce the new strategy of expanding the business into new areas and raise general awareness of the company. Edelman worked with the company to prepare messages and materials and present them to the investment community.
Results
Broadened buy-side and retail investors’ interest in the company. Through a series of press interview, Internet chats and one-to-one meetings, we gained understanding for the company’s strategic moves and decision on IPO. The transaction was seen by audiences as a strategic initiative intended to benefit all shareholders. There was limited negative reaction to the transaction in the national, business press. Most of the audiences understood the strategic rationale and long-term benefits.