What is a road show

A roadshow in finance refers to a series of presentations and meetings held by a company's management team and investment bankers to showcase the company to potential investors. It is a crucial part of the process of raising capital, particularly in the case of an initial public offering (IPO) or a new debt issuance. During a roadshow, the company's executives and investment bankers travel to various cities to meet with institutional investors, such as mutual funds, hedge funds, and pension funds. They present the company's financial performance, growth prospects, and strategic plans, as well as answer questions from potential investors. The goal of a roadshow is to generate interest and support for the company's securities among institutional investors, thereby maximizing demand and ultimately achieving a successful offering. It also allows the company to gauge investor sentiment and gather feedback, which can inform pricing and other aspects of the offering. Roadshows are typically highly orchestrated and can involve intensive scheduling and logistics to ensure that the company's management team meets with the right investors in the right locations. In some cases, roadshows may also include media appearances and interviews to further promote the company and its offering. Overall, roadshows are a vital component of the capital-raising process in finance, providing a platform for companies to engage with potential investors and build momentum for their securities offering.