Benefits of Listing
The world's stock exchanges have been listing companies, trusts and other products for hundreds of years, so the benefits of this path are well known to the market.
These benefits include:
- Access to capital for growth – listing gives you the opportunity to raise capital to fund acquisitions and/or organic growth.
- Higher public and investor profile – listing generally raises your organisation’s public profile with customers, suppliers, investors and the media. Your organisation may also be covered in analyst reports and may be included in an index.
- Institutional investment – public listing means your organisation will find it easier to attract institutional and professional investors.
- Improved valuation – being listed generates an independent valuation of your organisation by the market.
- A (secondary) market for your organisation’s shares – trading of your shares on ASX gives shareholders the opportunity to realise the value of their holdings, which in turn can help broaden your shareholder base.
- Exit strategy for early stage investors – listing provides a mechanism for founders of a company, family interests or early stage investors to exit their investment.
- Alignment of employee/management interests – the process of remunerating your employees, executives and directors with shares is simplified, making it easier to align the interests of your employees with the goals of the organisation.
- Reassurance of customers and suppliers – organisations listed on ASX generally find that the perception of their financial and business strength is improved.
Quick guide to the benefits of an IPO
Eddie Grieve explains some of the benefits an ASX listing provides to private companies seeking to grow their business with a new source of capital provided by the public equity market.
In addition to these benefits, the choice of ASX as the market on which to list offers you particular advantages.
- Scale – as the 8th largest equity market in the world, ASX is able to attract international investors.
- Reputation - ASX has an international reputation for conducting markets of integrity, ensuring vital investor confidence in our markets.
- World class systems – ASX markets are driven by leading edge electronic trading, settlement and registry systems.
- Inclusion in S&P/ASX indices – organisations listed on ASX may be included in a range of S&P/ASX indices. Many institutions use indices as a benchmark for the performance of their investment funds, and portfolios will hold shares included in that index.
- International investor events - opportunity for small and medium sized companies to promote themselves to institutional investors in New York, Hong Kong and London.
- 'Listed on ASX' logo – the ASX listed emblem promotes that your organisation is listed and traded on ASX. You can use this logo on communications material providing differentiation from your competitors and associating you with the strength and credibility of our market.