What is Listing?

Listing is the process of taking a privately-owned organisation and making the transition to a publicly-owned entity whose shares can be traded on a stock exchange.

The ability to have its shares traded on a stock exchange is central to an organisation's decision to list. The fundamental role of a stock exchange is to bring together in one market place providers of capital and organisations that require capital. ASX undertakes this role in Australia and as such, acts as a hub at the centre of the Australian economy. Providers of capital earn a return on their investments through dividends and capital growth, thereby increasing the overall wealth of the nation, while the organisations in which they invest provide jobs and drive the economic development of Australia.

Graph of value of IPO capital raised and number of new listings from 1999 to 2005

There are many reasons why an organisation may benefit from being listed, including:

  • the possibility of an increase in the market capitalisation of the company
  • access to a larger capital market
  • exposure to retail and institutional investors, both domestic and international

For an outline of these and many other benefits, please refer to Benefits of Listing.