Effective Tips for Businesses Readying Itself for Stock Market Listing

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A newly-formed company must complete a series of steps before a stock market listing. One key factor is finding an exchange for your company’s shares and people willing to purchase them.

There are a couple of ways for your company to be listed on the stock market, but good practice for many is to get equity capital assistance from financial institutions. Another is by applying to a stock exchange.

A company needs to meet requirements and provide financial information. After being listed, the company’s stock can be purchased and sold on the stock market.

Let’s review some of the usual methods to get your business listed.

Stock Market Options

Choosing where to list your company can be a difficult decision. While the US is the largest stock market, you may keep your company in your home country to give it an edge and make it more unique.

There are several factors to consider before finalizing where to list your company. Some companies prefer a stock market based on their ticker symbol, which lets people find them easily.

The stock exchange location for your company can impact your success. The choice is made difficult by a lack of transparency, as many exchanges don’t publish listing criteria. The ones that do may have difficult or conflicting requirements.

The multitude of stocks to choose from makes choosing a stock market daunting. Select a stock market based on the following:

  • The number of shares listed.
  • The range of shares available.
  • The number of investors.

Also, consider if the stock market you prefer has an investor base with similar investment philosophy to yours.

The main factors are based on your preferences. For example, you prefer listing in a country where your principal shareholders live for less friction.

If you operate in a developing country and look to entice a broader audience, you probably want one of the more influential exchanges.

Appoint a Sponsor

Many stock markets require a corporate sponsor to assist in the process and help you with what is acceptable and not.

They can also aid you in acquiring all relevant paperwork for the administration body. The more help you get with listing on a stock exchange and raising funds from the global equity capital markets, the more streamlined the process.

Hire an Underwriter

An underwriter is simply an individual or a financial institution that ensures funds can be used for a company’s stock offering.

The underwriter is responsible for finding buyers for the offered stock. An underwriter can find clients to buy stocks or bonds.

They also put the initial capital to purchase the stocks or bonds and sell them on the market with a markup.

This ensures that you will have interested buyers for the initial floating and, therefore, won’t flop.

Find a Broker

An individual broker helps to set up the price for your shares and market your firm after it becomes publicly traded.

Find an Account

An account ensures that your business won’t have irregularities that could delay or you’re your application.

After going public, your company needs to disclose all financial information, so you can’t afford to be misleading to your investors.

Find a Lawyer

A good lawyer will aid you through the legal stages and circumstances of the stock market and warn you of any disclosure needs and obligations you have to your public investors.

Using a financial institute’s assistance, you can make stock exchange applications and lists easier.

For instance, DBS provides a full-service equities platform for companies looking to list on a stock exchange and raise funds from the global equity capital markets.

Many things could get in the way of your chances of effectively listing your company on a stock exchange with proper preparation.

You can get through the process and start selling shares of your company to the public. Note that the job doesn’t end even after a successful listing.

You must file regular reports to the financial authorities and keep your shareholders updated.