Public Listing

Initial Public Offering (IPO)

An Initial Public Offering is a company’s first sale of stock (shares) to the public typically on a stock exchange, also known as ‘Going Public’.

 

Public Listing

The shares of the company are listed on a public stock exchange and can be bought and sold on that market.

 

Benefits of Public Listing

  • Access to New finance – new issue of shares raises money for the company and reduces the company’s dependence on debt finance.
  • Enhanced Company Image and Publicity.
  • Motivating Management and Employees.
  • Cashing in – existing shareholders can sell their shares on a public market thus allowing them realise the value of their shares.

 

Disadvantages of Public Listing

  • Costs – direct costs of listing, costs of information disclosure, reduced freedom of action in making business decisions.
  • Loss of control – with increased number of shares in issue the original shareholders control is diluted.
  • Increased public scrutiny.

 

Typical Stock Exchanges that Irish Companies have listed on are:

Irish Stock Exchange

AIM

London Stock Exchange

NASDAQ

  • NASDAQ (National Association of Securities Dealer Automated Quotations) system for over-the-counter Stock trading. Founded in 1971, the NASDAQ Exchange is the world’s first electronic stock market.
  • How to Become a Member of NASDAQ