Why List 
06/05/2008 
 

Companies list their shares for reasons that are unique to the particular circumstances of each company and its shareholders and management. A company may seek a listing because its shareholders would like to realise part of their investment; or because it lacks the funds to expand its business operations. Whatever your company's reasons for listing, a listing status could offer a company the following advantages:

  • Access to capital for growth with opportunities to raise funds both at the time of listing and at later stages

  • Broader shareholder base could potentially lead to a more liquid market in the trading of the company's shares

  • Employee incentive and commitment resulting from the grant of employee share options to tie in the company's key staff

  • Higher profile and visibility in the market could generate reassurance among the company's customers and suppliers

  • Increased corporate transparency could lead to the grant of credit lines on more competitive terms from the company's bankers

  • Greater efficiency resulting from rigorous disclosure standards demanded of listed issuers will lead to an improvement in their control, management information and operating systems

Whatever your reasons for listing, it is important that you consider and discuss with your advisers all the factors which are specific to your company and the vision of its management.