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The reasons why a company could be interested in joining the Mercado Alternativo Bursátil are varied:
a) Financing the company’s growth.
Capital increase, coinciding with its admission to the market or later, is the ideal way of achieving equity to support a company’s growth. Companies jump to the next dimension.
b) Objective appraisal of the company
As compared to a company that isn’t listed, the shares of a company that trades on the market have an objective value: market value or the company’s share price. MAB, as all other markets, includes growth expectations and benefits in the appraisal of listed companies, as well as other external variables. This singularity is what differentiates the transaction prices of those operations that take place on a public market from those prices that would be established on other markets. Shares are a high liquidity payment tool that can be used in financial transactions or that also facilitate other kinds of transmissions, such as successions, and that can be a way out for reference shareholders, etc.
c) Liquidity for shareholders
The market offers shareholders liquidity that allows them to make compatible their investment time horizon and the permanent nature of financing the company. Furthermore, the market facilitates the company’s access to a wide investment community that is often institutional, both national and international, and that believe in the project that the company represents and shares with the company its target of maximizing profits. On the other hand, the exit of certain shareholders usually coincides with a moment of change for the company. This change is usually clear in family companies. In this sense, family company and listed company are not excluding concepts, because the possibility of selling part of the shares on a public market doesn’t necessarily mean losing the control of the company. On the contrary, the market facilitates the company’s survival.
d) Visibility, prestige and brand image
Trading on the market provides the company solvency, transparency and prestige; prestige that is not only recognized by investors, but also by clients, suppliers or financial partners. The consequences are therefore clear: enforcement of the company’s commercial position and improvement of the relationship with suppliers, clients, banks, etc. The company’s image improves due to the publicity offered by the market and its repercussion on the media. In fact, the publicity that accompanies an IPO even has a direct positive impact on sales for different companies.
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