10 Reasons to list
- Ease of Access to necessary funding
- The company's public offering means that the company can obtain the necessary financing to expand its business easily by expanding the investor base and reducing the risk of relying on the financing and loans of existing shareholders or banks and financial institutions.
- Improve the company's image and prestige
- The listing helps to highlight the company's activity and performance through media coverage and helps to strengthen the brand of the company's products, leading to attract new investors and suppliers.
- Fair valuation of the company
- The listing of the company's shares will contribute to the fair evaluation of the company's share price through the interaction of supply and demand forces, and the share price of the company will be affected in the market according to its performance.
- Enhancing credibility
- The listing makes companies more credible as they operate under a supervisory umbrella that provides disclosure and transparency to investors, which leads to increase investor confidence in the company.
- Provide liquidity to shareholders
- The ease of buying and selling shares through the financial market one of the most attractive factors for invest in listed companies.
- Enhancing continuity of the company
- Diversifying the shareholders of the company would increase the opportunities of the company's sustainability and reduce the likelihood that future generations will face challenges which are difficult to sustain with the same attention, management and performance as the first generation.
- Increasing opportunities for mergers
- Merging is easier if the company is listed at the stock exchange with a fair market value, and this would increase opportunities for regional or international expansion and facilitate potential acquisitions.
- Stimulating employees
- Some companies create incentive programs for the employees through options to buy the company's shares to become an owner of the company, and this would lead to attract qualified staff and retain staff for long periods due to the shared purpose between employees and the company.
- Easy to compare the market position of the company with their counterparts
- Once the company is listed at the stock exchange it would be easier to compare its performance with their counterpart in the market due to the availability of sufficient information and disclosure, also its relative performance in the sector can be determined by comparing it with the general index of the sector.
- Increase acquisition ability
- The acquisition of private or public companies is easier if the company's shares are listed on the exchange and have a transparent market value.