Question: What is the motivation of companies going public? Is it money only?
On the contrary, assuming going public is good, why are companies delisting? Seems like quite a few companies are delisting.
Some stocks rarely trade, delisting would do everyone gd as the owners would not be subject to the shareholders. Usually going public is to get funds easier. Similary it would be easier for a public company to get loans then a private company
Access to capital market, bond, preferences shares etc. Institutionalise the management. Better corporate governance.
They need capital for expansion. However, due to cheap easy capital recently, companies are holding off their IPOs. Example, Uber & Airbnb. They dun need to IPO yet.
Getting $ from listing is cheap. Aside from the yearly listing fee, paying off bankers for ipo stuff, etc… There is no interest payment for the $ raised via equity once the company floats, unlike bonds and bank loans.
Companies de-list because 1) Business is reliably or going to be insanely profitable, and there is no incentive to share these with the passive minority share holders like us. 2) The company way below its net-net values, the real owners noticed and decided to privatize it… 3) Merger and Acquisition… companies get swallowed by a bigger fish or leveraged-buyouts.
In short-- any companies on the stock exchange should be checked for sound investment opportunity. The shit companies can’t get in… the fantastic ones don’t have to. LOL!
listing to get cash injection for expanding to cash out by selling shares
delisting cause company is undervalued due to low market price