Mercator Medical – intense and effective campaign in support of SPO

July – September 2016

Mercator Medical – intense and effective campaign in support of SPO

Scheduled for two months information campaign aimed at institutional and individual investors. Effective communication, the main axis of which was the update of the strategy of the company, helped in the short term to raise the valuation of the shares by more than 25% and guaranteed the success of a secondary public offering of Mercator Medical worth PLN 31.5 million

Initial situation

The main activity of Mercator Medical is the manufacturing and distribution of medical gloves. In 2013 the company debuted on the WSE main market acquiring funds for the expansion of a factory in Thailand and the development of distribution in Poland and abroad. In 2015 the company completed successfully and on time the implementation of the promises made to investors. Excellent financial results (for 2015 revenues were 50% higher than in 2013, while maintaining margins at a comparable level) confirmed the resulting increase in the scale of business. However, the market valuation did not reflect the above - the stock exchange value in July 2016 was only a few percent higher than the issue price of the IPO. The weak interest from investors in Mercator Medical was confirmed bz the exceptionally low turnover.

Objectives

The main objective of the communication in the offer was to support the investor attachment to the Company within a short time prior to the transaction - cooperation with the company was established two weeks before the publication of the Strategy for the years 2016-2018 and one month and a half before the beginning of the SPO. The activities were to be carried out with a very limited budget.

Action taken

InnerValue developed a comprehensive communication plan of SPO the axis of which was the new strategy of Mercator Medical. During an intensive campaign a series of activities using modern communication tools were carried out, among others:
The organization of a conference for investors and journalists concerning new development strategy. A meeting for the press was broadcast live to the Internet and the recording was posted on the company's website. The used platform also allowed questions from Internet users.
Online chat with the CEO preceded by a promotional campaign
Press conferences and individual interviews with journalists of the most popular financial newspapers and information agencies

Effects

Conducted activities promoting a new strategy and the offer of Mercator Medical helped to increase the interest in the Company among the participants of the capital market. Within weeks, the share price rose by over 25% (from approx. PLN 13.90 on the day of commencement of cooperation to approx. PLN 17.50 at the end of the project). Good sentiment for the company allowed to guarantee the issue price which was higher than the market price and thus to obtain from investors PLN 31.5 million - the amount sufficient, according to the assumptions of the Company, to implement the new strategy.

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