Benefits of Making Your UAE Business Public Through IPO

Benefits of Making Your UAE Business Public Through IPO

Recently, the UAE Cabinet announced that give their seal of approval for trading companies to issue IPOs. With the new amendments to the Commercial Law, a number of business experts see this as a positive change to the UAE business landscape. One of the main reasons would be to allow family-run trading businesses to raise fund for their business for expansion or ensure that their service delivery will be continued.

But apart from raising money for the business, there are a number of advantages of making your company public through IPO. Some of the benefits would be:

– Enhance your public image

Getting listed will definitely bring your company to new heights, especially when it comes to branding. By going public, this would create a sort of publicity and will attract potential investors and also make your company harness good relationship with big financial institutions like reputable banks.


– Facilitate mergers and acquisitions

Another benefit of going public is that it will make mergers quite easy for your perform mergers and asset acquisitions. You will have easy access to entities who would be able to help you facilitate and expedite the process, especially public entities and offices.


– Encourage employees

With the company getting listed or going public, you can also earn the trust and loyalty of your key personnel by offering them partial stocks from your company. This would make them feel that their service is recognized and their loyalty is valued. You can create an incentive scheme for key company personnel and staff based on their performance, tenure, and position.


– Create positive change to the company 

Before you proceed with getting your company listed for a public offering, you need to ensure that your business is running like clockwork. This means that you need to work on your service delivery and efficiency. Tasks like internal auditing will be done to identify the gaps and make improvements. When this is done, your company will not only be eligible for a public offering but you can also guarantee that your business runs smoothly as it should be.


– Provide assurance to stakeholders

Getting your company listed would definitely help you keep your stakeholder’s loyalty in check. With the possibility of getting big financial help, you can rest assured that they will keep their ties with you and your business.

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