Why an ASX IPO is prestigious and transformative for local companies
Listings facilitate a liquid market, give existing shareholders an ability to sell their shares and new investors the chance to buy.
Matthew Storey
On balance, an initial public offering on the Australian Stock Exchange is a tremendous achievement for any company, where the range of benefits easily outweighs the perceived costs.
First and foremost, an IPO can enable access to significant capital to support the company’s growth ambitions. The listing of shares with a share price effectively crystallises the founder’s and shareholders’ wealth for the years of effort put into the business, and over time, allows for shareholders to begin the diversification of their wealth.