IPO

Raising funds

Any company listing on a capital market will have access to funds through equity raises rather than relying on debt. This is usually the primary reason for listing outside of the other benefits gained.

Enabling growth of the group via acquisitions for shares rather than cash

By becoming a publicly traded company, the share capital in the business will have an inherent value attributed to it (the share price). As a result, a company can use its own share capital as consideration to purchase assets or other companies. This alleviates the need for large amounts of cash on hand to fund acquisitions.

Growing the company

Whether through raising capital via a share issue or issuing shares as consideration, a company can grow through acquisitions or asset purchases. Becoming a listed company can open doors to larger customers, suppliers and banks. They may need to see publicly available or audited information before working with new companies.

Increasing profile

Part of being listed includes making regular announcements to the market and the shareholder base. With this comes an inherent increase in visibility to the industry you are in and an increase in profile compared to your non-listed competitors. We have close relationships with corporate public relations firms who specialise in listed companies and can provide guidance during and after the listing process.

Provide an exit strategy for current shareholders

Owner managed businesses can sometimes find it hard to exit for a variety of reasons. Listing on a stock exchange allows the incumbent shareholders a partial exit with an expectation of a full exit over time. This allows the value of the business to be maximised and also offers the sellers a potential increase in value in the remaining shares held.

Incentivise employees

Providing valuable incentives to employees that are not cash based can be difficult. Share options can be a great incentive for employees, particularly when on a listed market.