A listing on a Stock
Exchange presents many opportunities for companies.
Value addition
A listing can also be
anticipated to attach importance to a company''s Employee Share Ownership Scheme. In addition, a listing on a stock
exchange can add value to a company. A listing could press forward brand awareness of company products and can augment a company''s corporate standing. Furthermore, the superior profile, tied with larger lucidity, could add to the company''s capacity to have access to traditional sources of capital.
Increasing capital
The Stock Exchange makes available access to a collection of institutional and retail investors and to the capital market. A registration on the exchange allows a company to raise capital and use it to sponsor investment and expansion. Even after a company is listed, it can boost up capital from the market, through the issue of fresh
securities such as Rights issues or through the issue of a new nature of securities.
Access to a widespread shareholder base
The stock exchange puts forward companies a right of entry to a wide-ranging and mounting investor base, which contains both entity investors and plentiful local and international institutional investors.
Price Detection
A listing facilitates companies to ascertain a price for their shares.
Low cost capital
The primary gain of raising capital from the market is that it eschews a number of the intermediation expenses apparent in the other forms of capital raising. Consequently, the market endows companies with capital at a cheaper cost.