Being a listed company comes with many benefits, it is easier to raise external funding in order to continue developing or expanding the business. It also contributes to the company’s growth and increases visibility to the public. By being listed on a marketplace, the company is exposed to interested investors and, by following the listing requirements, the company gains credibility and becomes more transparent.
With more than 20 years' experience Spotlight have gathered a lot of knowledge: we know what questions listed companies have and what information to give to the market. Our regulatory experts can always answer which rules apply and we constantly work to help our companies understand new changes in the regulatory framework.
Public companies can turn to investors to raise capital. In a listed company, investors can trade the stock daily – and in an easier way than in unlisted companies. Investors are further promised continuous access to information concerning all factors that may affect the valuation of the company. As the share is traded on a marketplace, the company is given a market value.
The raising of capital is done by the company offering shareholders and the public the opportunity to buy shares, usually newly issued, in the company. In addition, the listed company can carry out new issues to raise additional capital or use newly issued shares as payment on acquisition.
A common perception is that only larger companies can be listed and that smaller growth companies are limited to venture capital companies to raise capital. The disadvantage of these types of financing models are, among other things, that the company’s ownership control is restricted. Furthermore, the reality looks different. Most companies listed on Spotlight are smaller companies with clearly defined growth plans.
A listed company on Spotlight publishes financial information quarterly in the form of interim, half, or full-year reports. Listed companies also provide information regarding events that may affect the company’s valuation, as well as other information that is valuable to shareholders. The news is read by shareholders and other stakeholders and often receives further distribution through news agencies and media. A listing enables the company to gain visibility and exposure – which also benefits the company’s business, marketing, and brand. Moreover, the listing gives a quality stamp to the company and an increased credibility which is valuable in the company’s business contacts with, for example, suppliers, customers, banks, and investors.
Through a listing, the company’s stock can be traded daily. Existing shareholders and new investors can easily trade via the internet through banks and brokers that offer trade. Trading is surveilled by Spotlight’s market surveillance to ensure that investors comply with the rules and that listed companies comply with the information requirements. In this way, we create a safer trade in the marketplace.
A listing means that the company receives an additional number of shareholders and increased exposure. The company’s shares can be traded daily and the share price places a market value on the company. This entails that the listed company is, more than a private company, dependent on the trust of shareholders and the market. In addition, the company undertakes to comply with a comprehensive regulatory framework aimed at maintaining this trust and protecting investors. To comply with the regulatory framework – and to operate in an overall trust-worthy manner – a listed company must create a well-functioning and efficient organization as well as proficient internal routines.