This site has been archived on 02/02/2015

Navigation path

This website is no longer being updated.

Please visit the new Internal Market, Industry, Entrepreneurship and SMEs website.

Access to finance

Practical guide to going public

If your business is expanding rapidly, has plans to develop into a national / global business and is seeking significant capital to fund this growth, then accessing capital through the public stock markets may be an option for you.

Becoming a public company will:

  • help attract new investors and provide ongoing access to capital;
  • enhance your company's reputation and ability to attract customers, suppliers and employees;
  • provide a mechanism to allow your employees to take part in the success of your company.

This guide provides practical information on 'How to go public'.

Public listing: benefits and considerations

a. Benefits

  • Access to capital on a continuing basis – in the form of equity investment (shares) as well as other complementary sources of finance;
  • Increased visibility and profile with customers and suppliers, which will in turn help to access markets for your business;
  • Eligibility for inclusion in indexes;
  • Diversification of investor base;
  • Potential exit opportunity for owners;
  • Create a market for your company's shares, which may allow investors and employees to buy and sell shares and participate in the company's success;
  • Acquire other businesses, using your company's shares as an alternative to cash;
  • Attract and reward employees with shares or stock options;
  • Have a real time objective valuation of your business.


b. Considerations

  • Financial and time costs of going and remaining public;
  • Your company's share price may be affected by factors beyond its control including market sentiment, economic conditions or developments in its business sector;
  • External investors that provide capital to your business will expect the business to deliver value through dividends and share price growth;
  • As a public company, your business, its performance and its directors will be subject to increased scrutiny. You will need to:
    • produce and publish regular financial results reports (at least annually and half yearly);
    • disclose information on new developments in your business, whether positive or negative. This may concern:
      • your business operations (contracts, customers, suppliers);
      • financial conditions (turnover, liquidity, payments, funding etc.);
      • management (background and terms and conditions including pay etc.).
  • You should develop an investor relations strategy to maximise the benefits of being a public company and to maintain investor interest;
  • You may lose some flexibility in managing your company's affairs, particularly when shareholders need to approve some of your company's actions before they can be implemented.

Share: FacebookGoogle+LinkedInsend this page to a friend

Set page to normal font sizeIncrease font size by 200 percentprint this page