If you want to be part of the wealth creation process, if your company is growing strongly and if you are leader in your business sector or wish to become a leader, there are several benefits to get from floating your company on the stock market.
A simpler and less costly way to finance your projects
If you have large capital requirements, the stock market, which is an inexhaustible source of financing, can provide considerable resources to finance your large-scale projects and the process is straightforward.
Capital is raised on the stock market at the time of your IPO without you needing to offer any guarantees. Capital can be subsequently raised, depending on your needs or on growth opportunities which may arise.
You will have access to a new source of financing which is complementary to that offered by specialised organisations such as banks, leasing companies and private equity and your relationship with your bankers is likely to get even better.
By making a public share offering in the stock market, your firm’s interest charges are reduced, you secure its long-term growth and you increase its financial independence. Your firm may only increase its standing.
Benefiting from considerable tax incentives
By listing your company on the stock market, you will benefit from considerable tax incentives. A reduction in the Corporation Tax is granted for three consecutive years from the year following your company's flotation; a 50% reduction if you float your company on the stock market by raising its share capital by at least 20% and relinquishing preferential subscription rights; a 25% reduction if you float your company through a sale of securities.
Obtaining a certificate of good governance
Listing your company on the stock market offers a hallmark of prestige, good governance and corporate citizenship and represents a crowning moment in a firm’s development. It is a guarantee of quality, recognised as such in Morocco and overseas.
Your firm's credibility is enhanced and its financial value should improve. Its accounts are certified, published, analysed and distributed. A listing also undeniably gives credibility at an international level.
It will be easier to export or undertake business dealings overseas if your firm is listed.
Increasing your firm’s image
An IPO puts your firm, its products, its brands, its production capacity and its management under the spotlight.
A stock market flotation also provides an effective means of communication, promotion and advertising which is particularly cost-effective.
The entire financial community (financial analysts, journalists, fund managers) will talk about your firm and without you incurring any cost.
Securing your company’s long-term future
Opening your share capital to minority investors does not in any way compromise your independence and your decision-making powers.
If you do not wish to open your share capital, you may still raise sizeable amounts of capital at attractive rates by issuing debt securities. A stock market flotation, though, avoids any break-up or dissolution following the departure or death of one of the majority shareholders.
It is in fact easier to divide listed shares than industrial assets. The price of the share is known, undisputed and enforceable against third parties and therefore enables shareholders, who wish to withdraw gradually, partially or entirely, to liquidate their holdings.
Motivating your staff
An IPO also offers an opportunity to motivate your employees by reserving a portion of the securities on offer for them on advantageous terms as well as having them benefit from dividend distributions which should enable them to feel more involved in the company's development.
Satisfying your shareholders
Listing your company on the stock market will give satisfaction to your shareholders by providing them with increased liquidity and an unquestionable market value for their investment which is enforceable against third parties. They will also have greater visibility concerning the firm’s future development.