Listing with ASX will change the future of your company. It is important to understand the benefits of listing and the accompanying considerations.
A listing gives you the opportunity to raise capital at the IPO stage and, throughout your listing to fund future growth.
Facilitates acquisitions by providing ‘currency’ in the form of a more diversified and liquid share capital base.
Heightens your company profile with the media, analysts and the industry at large, helping sustain demand for your company’s shares.
Attracts institutional investment due to increased transparency and trading liquidity, thereby increasing credibility and access to capital.
Helps generate independent valuation by the market based on available information.
Leads to greater operating efficiency of your business due to ongoing reporting requirements and more rigorous disclosure.
Stimulates liquidity in your company’s shares enabling shareholders to realise the value of their holdings and by facilitating further capital raising.
Provides you with the option of remunerating your employees with shares, thereby aligning their interests with organisational goals.
Improves perception of your business strength due to the rigorous due diligence of the listing process and ongoing compliance procedures.
A company's share price can be affected by conditions beyond its control including general economic conditions or other events within the same industry.
Requires a higher degree of disclosure and corporate governance, which means additional management time and investment.
Heightened media exposure is a plus, at the same time, it requires management.
Additional costs are involved in an IPO, maintaining a listing and raising additional capital.
The sale of company shares inevitably involves ceding a degree of control to outside shareholders.
Greater disclosures, share dealing and managing investor relations all add to the management and directors' responsibilities.