IPO report: DACH ahead of the competition but with room for improvement
We recently published our DACH IPO IQ ranking report that takes a look at the overall website performance and digital strategy of new listings in the region. We scored the digital readiness of 10 companies that listed in 2015 on MDAX, SDAX and one company that listed on the SMI Expanded index. The benchmark for comparison is the 196 companies already listed in Germany, Austria and Switzerland – that we have already scored in the last 12 months.
We utilized our IQ web ranking methodology to evaluate more than 200 criteria across content and user experience categories, to understand if these companies are properly using their corporate websites to support their broader investor relations objectives.
The report shows that Covestro is leading this group with the highest overall score of 52%. It has in fact scored better than the overall DACH average score of 50% and also the DACH General Industrials sector score of 48%.
Our research shows that the average overall score of the recent DACH IPOs is 38%. While this is 1% ahead of the Nordic IPO average, and 4% ahead of the UK IPO average from 2015, it is significantly behind the DACH overall average of 50%.
The categories where the recently listed companies score low are CSR, social media and careers. Somewhat surprising is the mobile score – which should be higher considering the spike in mobile usage in recent years accounting for more than 25% of total traffic.
What our research shows
This broader view of IPO companies shows that the majority of companies list with corporate websites that do not adequately present the information that their diverse group of stakeholders want and need to make informed and accurate investment decisions. It is actually hugely important because we know that existing and potential investors are using the corporate website to receive the information they require, because our Audience Intelligence database that has identified more than 250,000 organisations, shows these banks, funds and other stakeholders looking at multiple pages across our client’s websites on a daily basis. There is clearly the opportunity to engage and influence these visitors.
In addition, the 2016 Rivel Research study on behalf of Investis asked more than 350 Buy-side professionals whether the quality of a website had an impact on their investment decision making, and 73% stated that it did have at least “somewhat” or “a lot” of impact.
Companies planning to list are subject to significant fees from the various advisers supporting them through the IPO process, and rightly so, but by failing to properly consider the digital channel as an influential medium with stakeholders, these companies are not doing everything they can to ensure they achieve their target pricing. Developing a successful digital strategy is not easy, but by committing the right amount of time and resource, and by working with the right digital partner, you give yourself the best chance of engaging and positively influencing your stakeholders.
In summary, the DACH IPO companies seem to have performed better than their Nordic and UK counterparts, but there is always room for improvement. Especially given the fierce competition and high expectations around the listing dates. Find out more information about how website use changes at IPO showing the peaks and troughs before, during and after the listing, who uses the website at IPO(our audience intelligence solution that shows the companies and investors that visit your site), and how to make the most of your existing content for an IPO, in the full report.
Enjoyed this blog? Subscribe to stay up to date with our latest news and views.