• SUSTAINABLE INVESTMENT
    • Investor Relation
     Investor Relation
    In the world of investments, transparency through a robust investor communication policy by the listed companies is key to success and MSX endeavors to provide a sustainable Investor Relations Framework to its listed companies in order to re-ensure the investor trust via two-way communication strategy.

    As a part of its initiate MSX supports IR community in Oman through soft best practice mandates, regional partnership access, learning support and certification avenues as it recently revived its long standing affiliation with MEIRA (Middle East Investor Relation Association) and a renewed commitment to lead the Oman IR Chapter towards the path of sustainable development.

    MSX currently partners with several local, regional & International entities to bring about global IR best practices to its stakeholders while safeguarding investor rights and ensuring fair valuation for listed companies all under one roof.

    Investor relations is a function synonymous to listed companies communication towards the market participants. It is THE KEY element driving a company’s business communications strategy.


    Usually an initiative at the part of a public listed company, IR departments work to communicate with investors, shareholders, government organizations, and the overall financial community.


    IR ensures that a company's publicly traded stock is being fairly traded through the dissemination of key information, primarily to allow private and institutional investors to determine whether a company is a good investment for their needs.

    As Stock Price reflects expectations of future returns on capital employed and Lack of information creates uncertainty and a discount to stock price, it is essential that the investors & financial community that largely influence stock price movement should be kept informed.

     

    Thus, IR function facilities;

    Ø  Direct means to inform existing and potential investors

    Ø  Essential communications function for a publicly company to:

     

    ü  Educate investment community

    ü  Shape investor protection

     

    Ø  And also to provide Indirect means to impact shareholder value

    A good IR strategy is directly propitious to company’s stock price, since;

    Ø  Intangibles

    ü  Enhances shareholder value

    ü  Support fair valuation of common stock

    ü  Minimize stock price risk due to uncertainty over performance

    ü  Shape / enhance perception of company commitment to growth

    Ø  Tangibles

    ü  Maximize analyst coverage (Sell and buy side)

    ü  Develop / maintain balanced investor base

    ü  Target financial institutions (Domestic/ international)

    ü  Track stock valuation

     

    IR acts as a portal, a passage through which investors and company executives communicate, and the first role of an IR function is to create channels of communication for a triage of;


    Ideally, an IRO (Investor Relation Officer) represents the function that is central to the communication flow;

    IR Success Checklist

     

    ü  Develop IR Compliance (under CMA/MSX disclosure guidelines)

    ü  Create an Online presence (Keep web space active and relevant)

    ü  Plan periodic interactive sessions/events (Check CMA IR Interaction Circular)

    ü  Identify Company Spokesperson (s) to inform public on (Financial / Business / product issues) as per MSX IR Circular.

    ü  CEO commitment, Involvement and support to open, consistent, credible communication are a must

    ü  Sense of urgency from senior management

    ü  Consistent and credible public reporting & communications

    ü  Clearly articulated, credible business strategies

    ü  Articulate, creative vision of the future

    ü  Open discussion of financial results & expectations

    ü  Regular & frequent contact with investment community

     

    To learn more about IR updates and practices in the Oman Market

    Write to us on ir@msx.om

    or Call + (968) 24 823 613

     

    MSX IR Circular

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