Benefits of Public Listing Every Private Company Should Know

One of the advantages of becoming a publicly listed تأسيس شركة في دبي is that it gives business owners more opportunities to increase their sales profit. With an adequate amount of capital to be raised from potential investors, the company will have more capabilities in exploring other sources of revenue. Thru public listing, the company will have better options in strategizing and executing its marketing, operational and expansion plans. As a result, this will help every company executives in making their business profitable in the long run.

Even before the Initial Public Offering (IPO), a company can already invite the attention of the media. News and updates in the form of blogs, news articles, social media buzz, press releases and printed publications can create a positive image of the company. Provided that the company would fully comply on the restrictions on the disclosure of information prior to the IPO, they can achieve popularity with little to almost no investment in marketing.

Publicity can also grab the attention of potential investors, stock brokers, suppliers, lenders and customers hence gives the company more windows of opportunity for growth. On the day of public listing, the announcement of the stock exchange would increase the company’s reputation in the industry. This exposure would then create a positive impression of the company’s brand to the consumers resulting to more purchases of its products and services.

Under Securities and Exchange Commission (SEC) public listing rules, a public company is allowed to conduct subsequent offerings of shares to the stock market after the IPO. Shall the company need more money to finance its future growth, they can issue follow-on offerings with less paper works involve.

Selling, buying, combining or dividing company/companies is a meticulous process involving different parties. But once a company goes for public listing, it reduces the complexity of the process involved in M&A. The shares of stock would serve as the key instrument for valuation and it is up to the advisory firm or investment bank to facilitate the merger or acquisition transaction in accordance with the prevailing SEC regulations.

The more liquid the assets of a company are, the more favorable it is to the investors. A publicly traded company is said to have higher degree of liquidity since its assets are in the form of stocks. This not only removes worries from investors on the capital they invest in the company but also boosts the confidence of external stakeholders transacting with the company. Investors can sell their shares of stock anytime. With the availability of financial documents, suppliers and lenders could have a complete awareness of the market status of the company they are dealing with.

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