What does “Listing” mean?
“Listing” literally means being admitted to the Stock Exchange Official List. This indicates that the stocks and shares that are listed are freely transferable and validly issued, not forged or otherwise tainted. It also means that the issuer meets the requirements of the law and regulation in the management of its affairs and in the submission of adequate, timely and accurate information about its business to investors.
How can the Exchange enhance a company’s access to new capital?
Listing makes companies more credit-worthy and reduces the cost of borrowing. Listing also permits institutional investors who are not permitted to hold unlisted securities to buy a stock. Listing also increases the visibility of a company.
Why should companies want to be “listed”?
“Listing” is a seal of approval; it is good for a company’s image; it may reduce its cost of borrowing from banks; it may make it eligible to be invested in by major financial institutions like certain US mutual funds which are only permitted to buy listed securities. Listed shares are usually more highly valued than unlisted; this usually makes the cost of new finance for listed companies lower than for unlisted.
Benefits of Listing
How to List
Issuers (that is companies that are Reporting Issuers) seeking the admission of securities to the Official List must submit through a member of GASCI, a written application.
Suitability for admission to the Official List depends primarily on meeting the requirements set out in GASCI Rules for example:
GASCI is willing to assist any company
considering raising capital through a new listed issue, including
a review of a prospectus or providing information to potential investors through
notice on this website.