Cambodia securities market was established in 2011 and has since seen the number of listed companies growing gradually. However, the figure is not satisfying yet in spite of the fact that being listed draws a wide range of advantages. As noticed, company owners might not be fully aware of the benefits that will bring to their companies once they are listed. Here are reasons for company owners to put into considerations.
Access to future capital and financial markets in the ASEAN region
When companies reach a certain level of growth, they may need to seek additional capital for continuous expansion or fulfill their plans. One of the most recommended methods is to go public. This means companies can get themselves listed on the securities market.
Going public allows companies to gain additional market recognition and a higher chance to present themselves on the international stage. As a result of public image enhancement, a rise of shareholders will happen, which will positively impact the increase of a company’s capital.
A better profile
As mentioned earlier, having your company listed on the securities market tends to make a strong and positive influence on the status and popularity. The power of public image will improve the company’s visibility and credibility as each company is required to undergo rigorous procedures to become a successful listed company on the market.
Not only for the purpose of increasing capital, but this opportunity will also attract more high-caliber board members, customers, investors, and talented employees. Most importantly, this will be a great opportunity for the company to be recognized by more of its privately-held counterparts and edge ahead of its competitors.
Listed companies on the securities market are supposed to have greater financial accountability, meaning that they are required to abide by the securities market rules stringently as it is known that companies are best to be transparent in dealing with financial data reporting. This will also allow listed entities to showcase their accountable actions created by company management and insiders. As a result, these listed entities with great accountability tend to have a higher rate in reaching success.
Marketability and liquidity
Being able to get your entity listed on the securities market allows shareholders a chance to notice the value of their investments. They will gain a better understanding and essential directions of where their money is going after investing in your company. Shareholders can also share risks and simultaneously benefit from potential increases of the entity.
Increase in employee morale and productivity
Listed entities will enhance their visibility and boost public perception, which surely improves employees’ morale and value. Employees are people who run the show at the back and front stage, hence, it is important to increase employees’ productivity as much as possible. They are the backbone of each business.
At the same time, the entity can also assist the Human Resource department in recruiting new and talented staff to join them easily through having a powerful company image.
Contribution to the national economic growth
Getting your company listed means you creates more opportunities for financial transactions and economic activities. Ultimately, this will contribute progressively to the economic growth of Cambodia.
In General, company owners will face many challenges in the rigorous process of becoming a listed company on the securities market. Thereby, it is recommended for them to seek professional assistance where they will be well taken care of. PP Link Securities is well-equipped with experts and consultants for securities, derivatives and financial consultation and can assist companies in getting listed successfully.