There are several routes to taking a company public…
…and assuming the business meets certain criteria – can be particularly beneficial for companies that are seeking to expand their operations or finance other growth initiatives.
Going public can also provide increased liquidity for the company’s owners, as it allows them to sell their shares in the company on the public market.
So what’s the appeal in taking an SME (which fits the bill) public?
🛒Access to Capital
An SME can increase its capital base by going public. The additional capital can be used to acquire new assets, scale operations, and make other strategic investments.
🛒 Increased Liquidity
Going public allows investors to easily buy and sell shares of the company. This can make it easier to raise financing, attract new investors, and increase the overall value of the business.
🛒 Credibility
The process provides more exposure to the public markets, which can boost visibility, establish the organisation as a serious player and enhance the company’s credibility.
🛒 Attract Talent
Attracting and retaining top talent is once again a serious challenge for SMEs. Going public can help, as talent is often drawn to companies that are publicly traded.
🛒 Enhanced Valuation
An SME going public can ultimately increase the valuation of the company. This can lead to a higher market capitalisation and increased investor confidence.