January - December 2014
Selvita - millions from WSE to fight cancer
Awarded with the 2015 Golden Clip award, an annual educational and promotional campaign associated with the Public Offering of Shares and IPO unique in WSE. In less than a year, we implemented a number of measures aimed at institutional and individual investors, using innovative communication channels and engaging internationally recognized experts in the areas of analysis and valuation of companies in the biotechnology sector.
Selvita is a biotechnology company founded in 2007 by former top managers of the listed Comarch. Despite the lack of experience in biotechnology, in a few years they built an organization that teamed up with major pharmaceutical concerns in the world. In 2011 Selvita debuted on the NewConnect market, acquiring from a private placement the amount of PLN 14.9 million. After the placement, the company focused on the development of business and did not carry out active communication with the media and the financial market. As a result, the market position and financial results of Selvita significantly increased,
but its value on the stock exchange within two years fell by more than half.
Recognition of the Company was small and journalists and investors did not understand the business model. On the Stock Exchange there were no comparable companies and classic valuation methods and indicators did not apply. Reactions of investors to the breakthrough information, from the point of view of Selvita, were not satisfactory.
InnerValue task was to build awareness of the Company and conduct educational activities, leading to a better understanding of both the business model of Selvita and the methods of valuation of biotech companies. This was aimed at supporting the Company's planned issue of shares and transfer of listing from NewConnect to the main floor of the Warsaw Stock Exchange.Action taken
InnerValue took temporary measures, such as establishing relationships with representatives of the major media and the organization of meetings in the formula of non-deal roadshow, the aim of which was to analyze the perception of the Company and its business model. Furthermore, together with the Company the comprehensive, long-term communication strategy divided into three stages was developed.
Phase I (I-VII 2014) - explanation of the Selvita business model, the characteristics of the global biotechnology market and the basis of the valuation of the companies in this sector:
Relations with media
Study tour for investors and analysts to laboratories of Selvita in Cracow
Two educational meetings - for investors and analysts and individual investors - in WarsawPhase II (XI 2014) - education in the field of advanced methods of analysis and valuation of biotech companies:
Start of cooperation with Edison Investment Research - a global analysing office covering, among others, approx. 150 biotechnology companies around the world. Analytical Report on Selvita
Several hour-long educational seminar at the headquarters of the Warsaw Stock Exchange, which was attended by Ralph Villiger - internationally recognized expert, author of books on valuations of biotech companies - and Christian Glennie - author of Edison analytical reports on SelvitaPhase III (XII 2014) - comprehensive promotional campaign of the Public Offering of Shares:
A broad online campaign divided into direct (on-line broadcast, LiveChat tool on the Selvita website, investor chat with the Board) and indirect communication (corporate film, intense banner campaign, re-marketing, promotion in social media)
Active communication with the media and investorsEffects
During the campaign Selvita reached directly more than 100 institutional and individual investors. Completed actions helped to generate unprecedented interest in the Offering. Investors - expecting high reduction made in the Offer subscriptions - even during the subscriptions were buying shares of the company listed on NewConnect even 20 percent more expensive than the maximum price in the Offer.
Selvita acquired in the offer PLN 27.3 million selling shares at the maximum price, which made it possible to acquire sufficient funds for the implementation of the strategy. Individual investors made subscriptions worth more than eight times the number of shares offered (the reduction was 88 percent). The largest Polish pension and investment funds became the shareholders.The project was awarded the 2015 Golden Clip for the best campaign in the Financial PR and Investor Relations.
Selvita SA continues to cooperate with InnerValue