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Is listing for you?

Listing with ASX will change the future of your company. It is important to understand the benefits of listing and the accompanying considerations.

Advantages

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    Access to capital for growth

    A listing gives you the opportunity to raise capital at the IPO stage and, throughout your listing to fund future growth.

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    Currency for external growth

    Facilitates acquisitions by providing ‘currency’ in the form of a more diversified and liquid share capital base.

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    Higher public and investor profile

    Heightens your company profile with the media, analysts and the industry at large, helping sustain demand for your company’s shares.

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    Institutional investment

    Attracts institutional investment due to increased transparency and trading liquidity, thereby increasing credibility and access to capital.

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    Improved valuation

    Helps generate independent valuation by the market based on available information.

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    Greater efficiency

    Leads to greater operating efficiency of your business due to ongoing reporting requirements and more rigorous disclosure.

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    Secondary Market for your company’s shares

    Stimulates liquidity in your company’s shares enabling shareholders to realise the value of their holdings and by facilitating further capital raising.

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    Alignment of employee/management commitment

    Provides you with the option of remunerating your employees with shares, thereby aligning their interests with organisational goals.

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    Reassurance of customers and suppliers

    Improves perception of your business strength due to the rigorous due diligence of the listing process and ongoing compliance procedures.

Considerations

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    Susceptibility to market conditions

    A company's share price can be affected by conditions beyond its control including general economic conditions or other events within the same industry.

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    Disclosure and reporting requirements

    Requires a higher degree of disclosure and corporate governance, which means additional management time and investment.

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    Media exposure

    Heightened media exposure is a plus, at the same time, it requires management.

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    Costs and fees

    Additional costs are involved in an IPO, maintaining a listing and raising additional capital.

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    Reduced level of control

    The sale of company shares inevitably involves ceding a degree of control to outside shareholders.

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    Director responsibilities

    Greater disclosures, share dealing and managing investor relations all add to the management and directors' responsibilities.

Contact ASX

 

  • Eddie Grieve
    Eddie Grieve
    Head of Listings and Issuer Services
     +61 2 9227 0519
  • James Posnett
    James Posnett
    Senior Manager,
    Listings Business Development
     +61 2 9227 0282
  • Kate Galpin
    Kate Galpin
    Business Development Manager
     +61 2 9227 0627
  • Josh Collard
    Josh Collard
    Business Development Manager
     +61 2 9227 0122