Trading for twelve years and during this period

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Beta plc has been trading for twelve years and during this period has achieved a good profit record. To date, the company has not been listed on a recognised stock exchange. However, Beta plc has recently appointed a new chairman and managing director who are considering whether or not the company should obtain a full Stock Exchange listing.

Required

(a) What are the advantages and disadvantages which may accrue to the company and its shareholders, of obtaining a full stock exchange listing?

(b) What factors should be taken into account when attempting to set an issue price for new equity shares in the company, assuming it is to be floated on a stock exchange?

Reference no: EM131107911

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