Marketing IPOs through social media - six key considerations

What you need to know

• ASIC continues to put initial public offerings in the spotlight with its latest report on marketing practices used to promote IPOs, which includes a focus on whether social media is changing the way IPOs are marketed.
• While the regulator's inquiries pre-empt widespread adoption of social media in this space, and we have spoken with brokers who remain sceptical about the value of social media marketing for IPOs, ASIC's report suggests that social media presents a "creative and innovative" way for issuers and brokers to promote IPOs.
• Companies considering an IPO, or brokers looking for creative ways to engage with potential investors, should consider whether social media is likely to be an effective marketing tool in their IPO campaign. If the answer is 'yes', it's crucial that every LinkedIn post, Facebook ad, tweet,