Greater challenge for smaller companies to gain visibility
The IR market has undergone significant changes in recent years, especially many significant changes for smaller companies. In recent years, we have seen an increase of 80 percent of listed companies in Stockholm, from 470 to 850.
The increase in listed companies has changed the market for Investor Relations. The increased competition and increased costs have meant significant changes for smaller companies. In the past, small companies have managed independently, but with the increase in companies, the competition for attention has become increasingly fierce.
Previous independent analyses that have been traditional and covered small companies have decreased. Following the introduction of Mifid (The Markets in Financial Instruments Directive), more and more investors have chosen a limited number of suppliers for analysis, which has limited the spread of the studies performed. Paid analyses, on the other hand, have increased, but the companies themselves bear the cost. Smaller companies also take the cost of participating in investor seminars.
The increase in listed companies has also led to increased competition for investors 'and journalists' time and interest in small companies, as there are now 850 companies to write about. The competition among the companies means that it takes a fascinating and exciting story for the companies to be monitored by investors and journalists.
For small companies, the changes have been radical. It has become more expensive and much more challenging to get attention to get through the noise. At the same time, the large companies were not affected by the changes. In order to succeed in getting through the noise and gain visibility in the media and the capital market, long-term work is required that involves investments in both time and money.