Winner: Hill & Knowlton and Baidu.com: Managing the Most Successful US IPO of the 21st Century
In June 2005, Baidu.com, the leading internet search engine in China, faced an uncertain market environment for its IPO. The Dow Industrials had dropped almost 800 points in the second quarter of 2005. Chinese companies that had recently listed in the US had been major disappointments for investors. In the light of former scandals, there was some concern over whether Chinese companies would comply with the necessary corporate governance regulations. Add to that a 12-hour time difference between New York and China, and the need for PR was unquestionable.
Baidu was a household name in China, but practically unknown in the US. Baidu had no operations outside of China, and no plans to expand its business outside of the country – a business model that usually deters international interest in a company. Another challenge was the fact that Baidu planned only to list in the US, not in an Asian market as well, so it was completely dependant on the US market for its valuation and market capitalization.
Hill & Knowlton was charged with devising a strategy to ensure that Baidu leveraged the IPO event as a means of quickly building widespread, positive awareness for the company. H&K's team members in Hong Kong conducted an intense media training session for members of Baidu's management prior to their road show and IPO, and developed an investor relations webpage for the company.
Baidu officially listed on the NASDAQ on August 5, 2005. Taking advantage of the relaxed SEC quiet period, CEO Robin Li gave an exclusive print interview to The Wall Street Journal. Along with CFO Shawn Wang, he spoke with Reuters, the Associated Press, Bloomberg, and Dow Jones. Li also appeared on CNBC twice – once on Power Lunch, and again on After the Bell. Baidu's IPO generated thousands of articles on its listing day alone. Media attention held strong long after the IPO, as the October 19 Financial Times mentioned the company in six different articles in a special feature section on China.
Baidu's IPO was the most successful first-day performance in the US in over five years, and was the greatest debut by a non-US company ever.
First-day performance was impressive, ending the first day of trading up 345% with over 26 million shares traded. "H&K successfully navigated international waters and customers to help Baidu.com roar onto the US scene," said one of the judges.
Honorable Mention: Financial Dynamics and Symyx Technologies: A Step Change in Symyx's Investor Relations Programs Increases Visibility
Symyx Technologies is a profitable small-cap scientific technology company. But until Financial Dynamics (FD) was tapped to translate its complex business strategy, few investors knew that. FD arranged briefings with key business outlets, contacting senior editors, ensuring that stories weren't too complicated when told secondhand. An analyst and investor day in New York was planned, where the team opened the trading day at the Stock Exchange, and interviewed with The Wall Street Journal, Chemical Week, and Chemical Market Reporter. FD regularly presented updated messaging to describe Symyx, improving how its story was presented. Since the campaign, Symyx has successfully transformed its IR program, raising visibility with Wall Street and stockholders. In less than 18 months, nine new sell-aside analysts began covering the company, and coverage has gone from virtually none to more than 40 placements.
Finalists:
Financial Dynamics and Electronic Boutique Holdings Corp.
Playing to Win and Optimizing Shareholder Value
Financial Dynamics and Symyx Technologies
A Step Change in Symyx's Investor Relations Program Increases Visibility
Hill & Knowlton and Baidu.com
Baidu.com: Managing the Most Suc- cessful US IPO of the 21st Century
Ketchum and Federated Department Stores
Creating the Department Store of the Future
Weber Shandwick and Casual Male Retail Group
Xlence in Redefining Big and Tall
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