As an issuer, listing on ESX provides you with access to a large pool of long-term capital that is critical to finance your growth ambitions. Listing provides access to a new source of finance that compliments your other sources of capital, such as bank lending, as it requires no guarantees or collateral to raise capital from the public, as issuing share securities bears no interest payment.

Indeed, listing is more than just raising capital – it is a strategic decision that boosts the company’s national and global profile, improves the company’s overall governance, and its standing as a sustainable business enterprise.

Access to Capital

Listing is a primary avenue for a company seeking to raise equity capital to expand the enterprise without the need to incur into debt. Once listed a company can issue significantly more equity stake in its enterprise to raise additional working or growth capital through secondary public offerings. Listing provides a significantly broader shareholder base than it would be otherwise. Listing provides a market-based and objective valuation of your business enterprise.

Enhanced Corporate Governance

Listing enhances the corporate governance of enterprises. Continuous financial disclosure requirements enhance the transparency and public trust of disclosures.

Enhanced Visibility and Credibility

A listed company is highly regarded by the public and its peers for its credibility and excellence with a high level of global recognition. Listed companies are often covered by global media networks and data broadcasting and analysis tools. This enhances the strength of the credibility of the company with partners, customers, and employees.

Increase your brand value by ringing the ESX opening bell at the ESX Marketplace, ESX website and communication by members of the exchange via various channels.

Listing increases the credibility of a business enterprise against potential partners and creditors which enables the enterprise to acquire investment and loans at preferable terms than otherwise. Listing also increases the marketability of products and services offered by the enterprise.

Boost Employee Performance

Listing provides avenues for companies to provide Stock Option Schemes that can be provided to employees, thereby promoting higher performance, and helping attract and retain talented employees. Various senior executives of a company can be paid through a mix of salary and share options.

Liquidity

Listing transforms liquidity, guaranteeing shareholders the opportunity to realize the value of their investments. Securities that are offered to the public can be transferred in an efficient and transparent manner with market prices determined according to supply and demand. Investors (e.g., shareholders) are therefore provided with the opportunity to increase or decrease their investment in a company (or other forms of equity investment) at any time-sharing risks as well as benefiting from any increase in the organizational value.

Liquidity is also guaranteed by the fact that listed securities can be used as collateral to borrow funds from various or directly exchanges with other securities or forms of property.

Continuity and Sustainability

Going public supports private companies and family-owned enterprises to become sustainable. Listing brings about full or partial decoupling of ownership and management, installs good corporate governance and financial responsibility in the enterprise, and allows successors to benefit from the dividends of a business enterprise that outlives their founders. Listing institutionalizes the structure of a business enterprise in the shortest possible time without the founding shareholder or family members losing sight of the operation of the company.

Exit Strategy

Listing provides a strategic avenue for owners, especially institutional investors, an exit strategy to sell the whole or part of the company. Listing makes it easier to sell publicly traded stocks at their true value than private holdings.

ESX’s adoptive market structure offers issuers:

Flexibility

• As an issuer, you can maintain control of your company by offering as little as 15% or more of its shares when you list.
• Based on the advice of your financial advisor and in compliance with ECMA rules and procedures, you may approach the primary market via book building process, which helps you to determine the market value of your shares, or fixed price.
• You may sell, both, some of your share ownership in the company while at the same time issuing new shares to shareholders.

Broad Investor Access

• As a modern and fully electronic marketplace, ESX creates an environment whereby Ethiopians across the country, Ethiopian Diaspora as well as foreign investors, can easily invest.
• Listed companies will participate in investor engagement workshops organized by ESX alongside leading local and international investors and other players.