The listing of a company on the stock market has several advantages:
- Raising capital and strengthening equity
Whatever the nature of the ambitions of a company, as launching major development projects (creation of a subsidiary, purchase of a business ... ), increasing or improving the capacity of its production and the reduction of its debts ... the stock market is for that an inexhaustible source of alternative financing.
- Diversification of funding sources
The company needs to diversify its sources of funding through Stock market which offers that opportunity by the wide range of products it offers to investors while protecting the original shareholders of the company. Thus, once listed in the market, the company can acquire on the market equity and debt capital it needs.
- Enlargement of the shareholding
The listing on the stock market facilitates the entry of new shareholders that the company could need during its development. Also, it allows releasing the company's capital even if other shareholders cannot or do not wish to redeem their shares.
- Improving the reputation
The listing of a company on the stock market helps to increase its reputation and strengthening its credibility with its partners on the national and international levels.
Apart from the direct benefits of listing on market, other opportunities may arise, including:
- Human Resource Development
A company ahead to be listed on stock exchange market reserves in general, a part of the operation to its employees and gives them the opportunity to become shareholders. This incentive system allows the mobilization and motivation of human resources.
- Sustainability and buck up control of companies
The listing on stock market also facilitates the Sustainability of the company, particularly in the case of family businesses, because it avoids any splitting or dissolution following the departure or death of one of the majority shareholders. It also provides backup control of the company through the distribution of a part of the capital or the use of appropriate financial products.
- Change in the system of "corporate governance"
The operation of listing on stock market involves a minimum of reliability, transparency of accounts of the company and a broader financial reporting effort directed toward actual or potential external investors. This led to the establishment of a modern "corporate governance” system of internal control and the professionalization of administration and management bodies.