For some business owners, going public is the pinnacle of success whilst for others it is a strategic move. For still others, growth and the need for more capital drive the decision. Whatever the motivation, the issuer should examine all aspects of its decision by asking the following questions:
- Why am I thinking of becoming a listed company?
- Is this the right time to be going public?
- What are the requirements for listing shares and the process?
- Are we prepared for the regulatory scrutiny and transparency that comes with being a listed company?
The precise circumstances behind a company's desire to go public vary but the following highlight the key benefits:
Access to capital
- Diversification of funding options and flexibility in fulfilling capital raising needs to fund current and future growth.
- Offering liquidity to financial, family or minority shareholders.
Visibility, status and valuation
- High visibility and distribution of your shares raises public awareness of your brand.
- Comparison with a peer group of the most well respected companies in Qatar from a wide range of industries.
- Public companies tend to receive more publicity than private companies and as a consequence of liquidity and transparency usually enjoy higher valuations.
- Public companies can be perceived by customers, trade creditors, suppliers and financiers as more stable and trusted given the company's commitment to transparency and disclosure.
For a full discussion of the considerations with regard to going public please see our publication Why List?.