Processing of listing application by governing body
Marketing and offer period, which may include roadshow or tour
Closing the offer
Corporate finance advantages
A company may find it advantageous to withhold profits or reinvest into research and development, says Dr Britton.
“Having the option to decide whether to pay investors a dividend of 4%, 1%, or 0%, gives companies more options than they have with other forms of capital raising.”
Other advantages include:
Easier acquisition deals
Lower cost of capital for equity and debt
Corporate finance disadvantages and alternatives
Of course, there are some disadvantages to consider as well, such as:
High expense of establishment and maintenance