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Moving Up The Ladder With Bursa
Malaysia
By Yusrin Junaidi
Bandar Seri
Begawan - Brunei - with its thriving economy supported by
vast reserves of oil and natural gas - has spawned many local
companies, which enjoy rapid and profitable operations.
To pursue
the next stage of growth, these successful companies should consider
going public by listing their shares on a reputable exchange like
Bursa Malaysia.
Bursa Malaysia offers clear advantages as a listing
destination for Brunei companies.
Firstly, it houses Malaysia's
sizeable, vibrant and internationally recognised equity market.
It
also gains from Malaysia's position as a leading international
Islamic financial centre that attracts Middle Eastern Funds.
In addition, with the exchange's
wealth of experience in corporate governance and disclosure
requirements - which are in line with international standards -
excellent technology and trading platform, and extensive range of
exchange trade products, both equities and derivatives certainly
bode well for Bruneian companies looking for a quality listing
destination.
Floating a company creates numerous
opportunities for forward-looking organisations.
A listing enables
companies to raise capital for expansion and to move up.
Although this is the major stimulus
that motivates most companies to float on the stock market, a
business that does not need any more capital can still benefit from
listing.
A key advantage of listing is
heightened profile, which enhances a company's credibility and
facilitates business negotiations.
Listing can enhance
competitiveness, especially in more sophisticated and diverse
industries. Global customers view a listed company as being more
reliable because it has to comply with the strict reporting
regulations of a stock exchange.
Going public also allows business
owners to unlock the value of their business and existing
shareholders - such as venture capitalists - to realise their
investment.
Being quoted on a stock exchange usually results in a
company's business and activities receiving more extensive coverage
via media and analyst reports.
This leads to a widening awareness
of the company and its product, as well as global recognition,
especially if its shares trade on a reputable exchange like Bursa
Malaysia. -- Courtesy of Borneo
Bulletin
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