► Raise capital from selling shares available for use in strategic growth initiatives, servicing of debt, and/or funding of acquisitions.
► The company may return to the stock market for succeeding offerings post-IPO to raise additional funding.
► Increased transparency from market-driven valuation and regular disclosure reporting of the company contribute to potentially more favorable corporate financing terms from other sources (e.g., banks, bond market, etc.).
► Liquidity and ready valuation of listed securities have a favorable impact on the potential entry of strategic investors in the company.
► Easier for investors to buy or sell shares of a company that is listed, as these can be done online or via a traditional broker.
► Publicly listed companies are required to comply with strict corporate governance rules and require greater transparency via regular disclosures to the investing public. This results in a professionally-run company with a sound management team leading it. It also enhances the sustainability of a company’s overall operations.
► Publicly listed companies are required to comply with strict corporate governance rules and require greater transparency via regular disclosures to the investing public.
► As visibility for shareholders and to the public increases through regular company disclosures, the credibility of the company heightens which makes it more attractive to prospective new investors and ventures.
► A publicly listed company generates greater awareness as compared to a private company’s conventional marketing and public relations efforts.
► Regular disclosures, media reports, and analyst coverage increase the company’s visibility to potential investors (both local and global) and strategic partners.
► Stock option plans for employees can boost morale and productivity, increasing attractiveness as an employer.