Reasons Companies Want to List on Bursa Malaysia
Becoming a listed company on the Bursa Malaysia stock market is an ambition dreamt of by many entrepreneurs. This is because substantial profits can be gained when a company successfully lists on the stock market. In Malaysia, the stock market is Bursa Malaysia. There are several reasons why a company would want to become a listed company on Bursa Malaysia.
Reasons Companies List on Bursa Malaysia
- Raising funds to expand the business
A company listed on the stock market will raise funds from the sale of shares to the public during the IPO process. By raising funds, the company can finance new projects, expand into new markets, and increase their competitive ability.
Not to forget, with the capital raised, most companies also use the money to pay off existing debts. In this way, companies can accelerate their business growth and achieve their goals more quickly.
- Enhancing the company''s profile
Being listed on the stock market allows a company to enhance their profile. They can gain wider media coverage and be recognised as a high-quality company.
This will give confidence to customers, suppliers, and investors regarding the quality of products or services offered by the company.
- Improving the ability to attract quality employees
A company listed on the stock market is regarded as having high growth potential. This makes the company more attractive to high-quality prospective employees.
Additionally, the company can also offer an Employee Share Option Scheme (ESOS). Shares given to employees can serve as an incentive to improve employee performance and their loyalty to the company.
- Improving corporate structure
The process of listing on the stock market requires a company to improve their corporate structure and comply with standards set by the Securities Commission Malaysia (SC).
This will help the company develop stronger management and control systems, and ensure that the company complies with relevant laws and regulations.
Frequently Asked Questions (FAQ)
1. Why do companies want to list on Bursa Malaysia?
Companies list on Bursa Malaysia to raise funds for business expansion, enhance their corporate profile, attract quality employees, and improve their company''s management structure.
2. What are the main requirements for a company to list on Bursa?
A company needs to have a strong financial track record, good business prospects, and a corporate structure that meets the standards set by the Securities Commission Malaysia (SC).
3. What is the difference between the Main Market and ACE Market on Bursa Malaysia?
The Main Market is for larger companies with strong financials, whilst the ACE Market is more suitable for newer or mid-sized companies with high growth potential.
4. How can ordinary investors invest in listed companies?
Investors need to open a CDS account and a trading account through a registered broker. After that, they can buy and sell shares of listed companies through the trading platform.
Want to start investing in shares on Bursa Malaysia? Open a CDS account with Mahersaham today and get exclusive guidance. Also download our free investment basics ebook to understand the ins and outs of share investing.