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Floating your Company
 

Floating your company on the ASX is usually aimed at gaining access to capital markets for financial expansion and acquisitions.  For many businesses considering floating a company on the stock market, rather than sell out they wish to remain part of the company's future growth.

 

When floating your company there are a number of advantages and disadvantages to consider.  The advantages of floating your company include:-

 
  • Access to new capital to develop a business
  • You can offer employees incentives by granting share options
  • Being a public company can provide customers and suppliers with added reassurance
  • Your company may gain a higher public profile
  • Provides greater potential to acquire other businesses as you can offer shares as well as cash
  • Personal guarantees of directors are not usually required for borrowings.
The disadvantages of floating your company can include:-
 
  • Your business may become vunerable to market fluctuations outside of your control
  • If market conditions change during the floatation process you may have to abandon the float
  • The costs of floating your company on the ASX are substantial and incur ongoing higher professional fees
  • You will have to consider shareholders interests when running your business which may differ from your own objectives.
  • You may have to give up some of the management control which translates into a risk that the company could be taken over in the future.
  • Public companies need to comply with additional regulatory requirements and meet accepted standards of corporate governance.

Floating your company on the ASX usually takes 6 months although this time frame can vary from 3 months to 2 years.  If you feel that your company is suitable for floating and require expert assistance and advisory services for Pre-IPO and IPO plans see the experts at Integral Capital Group.

 

The Integral Capital Group have extensive experience in all facets of financial management including raising capital for business expansion, mergers & acquisitions, debt raising and equity restructuring for private and public companies, Pre-IPO and IPO plans.  Contact Len McDowall on +61-1300 70 70 10 or email info@integralcapital.com.au to discuss floating your company.