CIRO Roadshows & Non-Deal Roadshows 2

Question 1

What is the typical duration of a traditional IPO roadshow in the United States?

Accepted Answer

Approximately two weeks covering major financial centers

Answer

A typical U.S. IPO roadshow lasts about two weeks, with management visiting major institutional investor hubs such as New York, Boston, Chicago, San Francisco, and sometimes international cities.

Question 2

Under Regulation FD, what must an IR officer ensure when discussing material information during a non-deal roadshow?

Accepted Answer

Any material, non-public information disclosed must be simultaneously or subsequently disclosed publicly

Answer

Regulation FD requires that any material, non-public information selectively disclosed to investors must also be made publicly available, preventing unfair information advantages.

Question 3

What is the primary purpose of targeting analysis conducted before a roadshow?

Accepted Answer

To determine which institutional investors are most likely to be interested in owning the stock

Answer

Targeting analysis helps the IR team prioritize outreach to institutional investors whose investment mandates, sector focus, and portfolio characteristics align with the company's profile.

Question 4

What does 'book building' refer to in the context of an IPO roadshow?

Accepted Answer

Collecting indications of interest from institutional investors to determine demand and price the offering

Answer

Book building is the process by which underwriters gather non-binding investor commitments (indications of interest) during the roadshow to gauge demand and set the final IPO price.

Question 5

Which metric is most commonly used to evaluate the effectiveness of a non-deal roadshow?

Accepted Answer

The number and quality of meetings held relative to targeted investors, plus subsequent ownership changes

Answer

NDR effectiveness is best measured by tracking whether targeted investors subsequently increased positions, the breadth of high-quality meetings secured, and shifts in the institutional shareholder base.

(CIRO) Certified Investor Relations Officer Practice Test

(CIRO) Certified Investor Relations Officer Practice Test

CIRO Roadshows & Non-Deal Roadshows 2