Companies that list themselves on the stock exchange have their advantages. 'Going public' as some would like to term it, is regarded as a cost-effective way to gain:
- Higher ProfileA listed company has greater visibility than one that is not listed. Publicity is generated by stockbroking activities which will distribute information on public listed companies, as will daily newspapers which carry stock market reports. This will ultimately raise interest towards the company and attract new business.
- ConfidenceWhen a company meets the stringent regulations of Bursa Malaysia and succeeds in being listed on Bursa Malaysia, it automatically gains credibility that projects confidence to its investors.
- Additional FundsListed companies provide liquidity for investors and an efficient valuation system which will enable investors to sell their shares anytime on the market with a market value. A listed company that is well managed and displays strong responsibility towards its shareholders has the potential to raise more funds from existing shareholders via rights issues and loan stocks (which proceeds can be used for expansion plans).
ExpansionDue to the publicity and recognition gained through market activities, listed companies are in a better position to expand their operations locally and globally.
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