Funds obtained through stock listing do not need to be repaid in a certain period of time. On the other hand, these funds can immediately improve the company's capital structure, so that the company can borrow loans at lower interest rates. In addition, if the IPO is very successful and the future market trend is very strong, then the company may issue more shares at a better price in the future.
Listed companies usually buy other companies through their shares (rather than paying cash). If your company is publicly traded in the stock market, shareholders of other companies will be willing to accept your shares instead of cash when selling. Frequent trading in the stock market provides flexibility for these shareholders. When necessary, they can easily sell stocks or borrow money against stocks.
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Some enterprises insist on not going public because they want to make the family business the ultimate; Some choose to only take the road of specialization and make a strong and stable cash flow; But when the enterprise develops to a certain stage, it is probably more out of fear of public companies.
Once a company goes public, it means that managers give up part of their freedom of action. Non-listed companies can generally make their own decisions. Every step and plan of listed companies must be approved by the board of directors, and some special matters even need the approval of the shareholders' meeting.
Public listing can help companies improve their visibility in society. Through press conferences and other public channels and the daily performance of the company's shares in the stock market, the business community, investors, the press and even the general public will pay attention to the company.
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