Taking your company public

Taking your company public is an opportunity to strengthen the equity capital base of a company for future growth. When a company goes public it gives up a part of the influence it has on the management of the company in favor of other significant benefits.

• First, access to the capital market means access to a large number of potential investors willing to provide equity capital. Investors can minimize their risk by spreading the shares they hold across various companies, which is possible because share capital is raised by issuing stock in small denominations.
• Furthermore, taking your company public involves a capital increase for your company, which means that you effectively acquire more capital that can be used for capital-intensive expansion plans. A dynamic management board gains the necessary capital to cover the expansion plans of a company.
• Additionally, the stricter disclosure obligations and extensive public relations activities at the time of going public help to raise the media’s awareness of your company and thus the degree of recognition.
• Finally, an initial public offering is also an opportunity to introduce employee stock option schemes which serve to fortify the foundation on which the success of the company rests.