True entrepreneurs make the right decisions against all resistance. Ströer developed like no other company on the market for outdoor advertising in Germany, and entered the Prime Standard of the Frankfurt Stock Exchange with precisely this equity story.
Establishing new markets requires persistence and continuously developing the business model in ways previously unimaginable. Some investors and some ‘single premium business’-focused large banks do not appreciate such deviations from the norm. We, by contrast, welcome such cases and view them as big value opportunities for our clients.
When the Ströer share price dropped below € 10 on account of economic instabilities in Europe and the company’s entry into a new business segment for online advertising in 2012/2013, we remained fully committed, published countless research pieces, and contacted hundreds of investors on Roadshows in London, Frankfurt, Paris, Zurich, Copenhagen etc. Our efforts in the hopes of contributing to selling the new and improved equity story to institutional investors paid off, with the share price making movements towards its fair value. As a logical consequence of these actions, we were honored to play a key role in the large placement of over € 300m worth of shares to investors globally in November 2015 at a share price of € 58.
Insofar as we know the company, this will not be the final word in the Ströer story. From our experience with the company, satisfaction with the Status Quo is not Ströer’s strongest suit… and definitely not ours!