Season 1, Episode 26: Andrew Kyzyk, SVP at OTC Markets Group
Tips on increasing North American Ownership if you are a foreign issuer.
On this episode of the IR Update, we welcomed Andrew Kyzyk, SVP at OTC Markets Group. Andy provides insightful tips on increasing North American Ownership if you are a foreign issuer.
OTC is the largest stock market for international companies, and it helps companies navigate the complexities of different markets and regulations around the world. According to Andy, many companies used to be nervous about being SEC reporting, so OTC helps companies through an exemption for foreign private issuers. This allows companies to have a secondary quote on the OTC without being SEC registered.
OTC has different levels of governance and requirements, and Andy reviews them with us and explains how to join each category. These help investors understand each issuer better and know what to expect in terms of disclosure of each company. Listing an ADR at OTC also helps with the local market liquidity.
Andy also discusses in detail ways for foreign issuers to increase their North American ownership. Some takeaways are: investors are data-driven today, so have a great IR website. Companies must also focus on profitability and growth. Research is also crucial, so get sponsored research if you don’t have enough coverage. Perform a heatmap targeting. Attend industry conferences and return investor calls. So getting North American investors require work, but the return speaks for itself.