Going public: Flotation gives access to capital but has other benefits

The fact that investors tend to target firms worth €100m-plus doesn’t mean smaller companies shouldn’t seek out the stock market

Access to liquid pools of capital is the principal reason for going public.

For some ambitious business owners the ultimate goal is to float on the stock market through an initial public offering (IPO). Many Irish companies have followed this path with great success over the years. These include CRH; Flutter — formerly Paddy Power; the Kerry Group; Kingspan; Glanbia; and a legion of others. These companies have sought a public listing for a variety of reasons, principally access to capital.

“The main benefit for a company floating is that it provides permanent equity capital and a base to continue to raise capital to fund growth and for acquisitions,” says Piers Coombs, head of the Goodbody London office.