Initial Public Offerings – An inside view

The equity story also forms the basis of the IPO investor marketing.

The equity story often strongly emphasizes the future upside potential of the IPO company rather than actual earnings and cash flow.

“key investment highlights”

While the five to ten main building blocks of the equity story

interpreted as “keep it short and simple”

The KISS principle

Owing to the great importance the equity story has on the success of an IPO, the IPO company and investment bankers spend substantial time formulating, refining and fine-tuning the equity story.

The equity story aims at communicating the company’s core competencies, competitive strengths and future strategy

It is the five-minute elevator pitch summarizing they key arguments as to why an investor should invest in the IPO company’s shares.

The “equity story” represents a high-level summary of an IPO company’s investment proposition in a condensed format and tailored to the use of research analysts and professional public market equity investors