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Is listing for you? 

Find out whether listing with ASX is appropriate for your company and its long-term strategic goals. 

Listing with ASX will change the future of your company. It is important to understand the benefits of listing and the accompanying considerations.

Advantages

Access to capital for growth

A listing gives you the opportunity to raise capital at the IPO stage and, throughout your listing to fund future growth.

Currency for external growth

Facilitates acquisitions by providing ‘currency’ in the form of a more diversified and liquid share capital base.

Higher public and investor profile

Heightens your company profile with the media, analysts and the industry at large, helping sustain demand for your company’s shares.

Institutional investment

Attracts institutional investment due to increased transparency and trading liquidity, thereby increasing credibility and access to capital.

Improved valuation

Helps generate independent valuation by the market based on available information.

Greater efficiency

Leads to greater operating efficiency of your business due to ongoing reporting requirements and more rigorous disclosure.

Secondary market

Stimulates liquidity in your company’s shares enabling shareholders to realise the value of their holdings and by facilitating further capital raising.

Commitment alignment

Provides you with the option of remunerating your employees with shares, thereby aligning their interests with organisational goals.

Reassurance

Improves perception of your business strength due to the rigorous due diligence of the listing process and ongoing compliance procedures

Considerations

Susceptibility to market conditions

A company's share price can be affected by conditions beyond its control including general economic conditions or other events within the same industry.

Disclosure and reporting

Requires a higher degree of disclosure and corporate governance, which means additional management time and investment.

High media exposure

Heightened media exposure is a plus, at the same time, it requires management.

Costs and fees

Additional costs are involved in an IPO, maintaining a listing and raising additional capital.

Reduced level of control

The sale of company shares inevitably involves ceding a degree of control to outside shareholders.

Director responsibilities

Greater disclosures, share dealing and managing investor relations all add to the management and directors' responsibilities.

Listing essentials