Industries
Riverstone
Challenge
Riverstone Holdings Limited, a leading manufacturer of specialised cleanroom and healthcare gloves was facing three key challenges in the form of valuation gap, stagnant share price performance and low trading liquidity. Listed on the mainboard in Singapore Exchange, the Malaysia-based company was trading at a discount compared to its peers in terms of price-to-earnings valuation and had limited interest from the investment community due to low exposure.
Strategy
We devised a brand new strategic positioning for the company and identified key investor relation areas to improve. We proactively engaged the investment analysts, institutional investors and fund managers to instil interest within the investment community. Apart from hosting site visits to the company’s manufacturing plants in Malaysia, we actively participated in brokerage roadshows to enhance Riverstone’s corporate profile.
While focused on securing the interests of institutional funds and analysts, we concurrently targeted retail investors by participating in SGX-led investment seminars and pitched to media bodies for coverage to increase Riverstone’s exposure.
Outcome
Our commitment to our client yielded positive returns in the form of share price performance as it outperformed Straits Times Index and industry peers. In addition to successfully attracting analysts’ attention to Riverstone with their initiation and non-rated reports, we also obtained mainstream media coverage to enhance its corporate profile.
As a result of our efforts, Riverstone’s share price increased 86.0% from S$0.50 on 1 July 2013 to S$0.93 on 30 June 2014 while P/E ratio improved from 9.5x to 14.0x.
Our efforts are recognised publicly as Riverstone’s IR has emerged as a Finalist in the PR Awards 2014 for “Best Investor Relations Campaign”, and nominated for “Best Investor Relations” in the prestigious Singapore Corporate Awards 2014.
IRVA
Over a one year period (1 July 2013 – 30 June 2014), we achieved a gross IRVA* amounting to S$198,000. As a result of our proactive efforts in raising awareness efforts for Riverstone in the investor community, the company has achieved the following:
| Components of IRVA | Quantitative factors | Attributed value |
| Media value-add | Three exclusive media coverage | S$18,000 |
| Research value-add | 10 research reports including three initiation reports (total number of research report, and specific number of initiation after FPR participate) | S$44,000 |
| Network value-add | 22 fund and analyst meetings, conferences and brokerage roadshows (total gross number, no specifics mentioned) | S$136,000 |
