benefits of listing a company in nairobi stock exchange nse – 5 advantages

Last updated on June 10th, 2023 at 01:26 pm

This article sheds light on the benefits of listing a company in Nairobi Stock Exchange Kenya.

Do not view this article from the point of view of the company and its owners.

Look at it from your perspective as a potential investor and future shareholder.

How many thousand shillings did you spend to invest in a reputable company? Will it really pay off?

When a company decides to go public for several reasons, it is called an initial public offering (IPO).

Appropriately, the bank is selling its stock to the public for the first time.

Many companies do this to raise capital for expansion and become a publicly traded company, which is a plus.

benefits of listing a company in nairobi stock exchange nse

The company is listed on the stock exchange to be listed on the stock exchange. The transition from private to public is very interesting, but in this world, nothing worthwhile comes on a silver platter.

Overcoming lending restrictions

The opportunity of using the public market to raise money for companies with high current and future income and strong growth cannot be ignored.

With the increase in population and the demand for basic goods, business will need to expand its resources from time to time.

In doing so, it allows you to become a shareholder.

Low credit rates

Going public means all your financial information is available. A business is an open book and the bank can easily determine its existence.

In such a situation, banks tend to have low interest rates and loan amounts that they can extend to the business.

For you, the potential shareholder, you are confident that the company will operate forever.

Liquidity

A private company’s business can be procured through a well-known research for cost.

But the fact that the company is going public means that it is listed on the NSE, which is a cheap organized stock exchange.

Raising funds from various investors takes into account the financial benefits of listing on the NSE.

Public utilities are more expensive and flexible for you.

Getting to know the entrepreneur

Kenyans are curious about certain industries. Listing on a major exchange like NSE is a form of advertising for companies.

This recognition builds the confidence of potential investors because they will be interested in knowing more about the company because they have heard about it.

You don’t have to worry about cheating and cheating. Public institutions are legitimate.

Diversification

Once a company goes public, it becomes more creative and finds more possibilities and more financial opportunities in the form of products.

This can include equity investments, adjustable-rate debt, and low-cost bank loans.

The beauty of this is that the returns can be better for you as an individual depending on the product you want to invest in.