Source of Funds
- Ability to tap a broader universe of investors as well as larger pool of investment capital.
- More capital can be raised through additional stock offerings if sufficient investor interest exists.
- In a tight monetary cycle, with high debt costs, equity markets are a more efficient and cost effective way for companies to get funded.
Flexibility of Use
- Hire new staff, expand existing operations or fund acquisitions.
- Use Listed Shares as “swaps” for acquisitions and mergers; this can accelerate domestic, regional and global growth strategies.
- Decreases a company’s reliance on raising funds on debt markets and reduces annual interest payments.
- Be able to attract and retain more highly qualified personnel if it can offer stock options, bonuses, or other incentives with a known market value, especially in a tight labor market.
- KSE is amongst the lowest listing and annual fees in the region.
Exit Strategy
- Existing shareholders can more easily sell their interests at retirement, for diversification, or for any other reason. A ready market always exists for a publicly listed company.
Profile Building
- More public attention due to more media interest.
- Coverage from Investment Analysts both domestically and internationally can provide the company with a greater profile and visibility.
- Ultimately, a more diversified group of investors will take an interest in the company, increasing demand for its shares thus raising its value.
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