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Optimize growth opportunities with the new tools at hand
After a successful listing process, notoriety is increased and enthusiastic investors are attracted to the business, providing the Company with enhanced capability to fund new opportunities. This is the case because one of the payoffs of being listed is that the Company can raise capital and do strategic deals far more easily.
The proceeds of the Offering and additional funding rounds, that more easily can be obtained by already listed companies, can be used to:
► R&D initiatives
► Enter new markets / countries
► M&A
► Strengthen the company’s capital base
► Balance the Company’s capital structure and achieve a better mix of equity and debt
► Fund employee shareholding plans
► Offer bonus issues
► Propose optional dividends
A company with securities admitted to trading will have much easier access to the funding needed to put in place the initiatives above, not only at initial offer, but also afterwards through secondary offers. The easier access to funding from capital markets after going public generally enables the company to raise money in a less costly and efficient way, with more flexibility than it could through bank-based financing. All funding processes that encompass the issuing of securities are much easier for a company with securities admitted to trading company, especially in the case hybrid products in which it is advantageous to have the underlying product listed on the stock market. Additionally, companies with shares admitted to trading on a regulated market do not have to fulfill the Financial autonomy ratio requirement for the issuance of bond. Please refer to chapter 5.1.1.2. Eligibility criteria for further information.
