The stock exchange facilitates the flow of money among investors, capital owners, and entrepreneurs who need funds for company’s development. At a certain stage of development, basic forms of financing may no longer suffice for a company. Therefore, companies often start considering other alternative financing options, including raising funds through the capital market. At the same time, any leap in development or larger investments require fresh capital. By issuing securities and listing them on the stock market, a company not only obtains additional financial resources but also achieves greater visibility for its business and brands. This, in turn, builds greater trust among investors both domestically and internationally, allowing the company to generate additional financial resources.
The markets of the Ljubljana Stock Exchange are designed for both mature companies, which can raise capital through the regulated - Stock Market, and small or medium-sized enterprises through the SI ENTER market, where trading in shares, bonds, and others is possible.
Trading on the Ljubljana Stock Exchange takes place through the internationally recognized trading platform Xetra™, which is accessible to both domestic and foreign member firms. This means that the markets of the Ljubljana Stock Exchange are open to both domestic and foreign investors.
The markets of the Ljubljana Stock Exchange are designed for both mature companies, which can raise capital through the regulated - Stock Market, and small or medium-sized enterprises through the SI ENTER market, where trading in shares, bonds, and others is possible.
Trading on the Ljubljana Stock Exchange takes place through the internationally recognized trading platform Xetra™, which is accessible to both domestic and foreign member firms. This means that the markets of the Ljubljana Stock Exchange are open to both domestic and foreign investors.
ADVANTAGES OF LISTING A COMPANY ON THE STOCK EXCHANGE
- Financial benefits
- Expansion of business and entry into new markets - One of the most apparent reasons for a company to go public is to acquire the necessary funds for development and further growth.
- Access to new funding opportunities - Listing on the stock exchange provides access to new sources of financing, offering advantages. Debt financing through the issuance of debt securities can also be more favourable compared to bank loans, providing a significant opportunity for diversification of funding sources and typically not including operational restrictions, collaterals, and other commitments that often accompany bank financing. Additionally, securing fresh funding typically becomes easier after entering the stock market. Greater flexibility in funding sources also enhances the company's negotiating position, for example, in obtaining bank financing.
- Acquiring fair market value - market value is an additional valuation method that, when seeking additional financing and planning the company's development, perhaps even in the search for a strategic partner, can be more reliable and favourable than book value or other valuation models.
- Increased liquidity - Listing on the stock exchange significantly facilitates entry and exit from ownership, making the investment more attractive to investors.
- Easier capital structure planning - issuing financial instruments allows for more straightforward and long-term management of the desired capital structure, including the allocation between equity and debt capital as well as the maturity of the latter.
- Marketing Advantages
- Greater visibility for the company and its brands - Listing a company on the stock exchange attracts significant attention in the wider public, and continuous communication about the performance of the listed company contributes to increased visibility of the company and its brands. News about the development and operations of companies on the stock market is a constant in the media world.
- Exposure to a new audience - By going public, companies can come onto the radar of institutional investors, private equity, venture capital, sector experts, business partners, index providers, and international media. When financial analysts cover the company, its reports and financial results can reach a broader audience.
- Enhanced Reputation and Trust
- Improve the company's reputation and investor trust - Companies listed on the stock exchange must adhere to certain corporate governance and transparency standards, significantly boosting the credibility of these companies. Stock-exchange-listed companies have a better foundation for acquiring new customers, suppliers, or business partners. Additionally, they enjoy greater trust from financial institutions, facilitating easier access to various financial products. Due to stock exchange listing, companies are required to meet stricter standards for public disclosure of their financial position and corporate governance, making them more transparent, credible, and reliable compared to non-listed companies.
- Corporate Governance
- Enhance corporate governance - Listing a company on the stock exchange makes transparency a crucial aspect of daily operations. By going public shareholders and other investors receive sufficient quality information they need for making informed investment decisions. Adequate corporate governance installs greater confidence among investors, making them more willing to invest in such a company. At the same time, the management's resilience to unwanted events and impacts improves.
- Easier employee rewards - Listing on the stock exchange increases liquidity and provides a market price, making it easier to reward employees with shares or options. The company can acquire shares for rewards through buybacks on the stock exchange, and recipients can more easily grasp the value of what they have received. Rewarding management and employees becomes easier and more transparent, thereby strengthening their commitment to the company and its goals.
.png?preset=blok_50)
