In view of rising interest rates and challenging markets, more and more companies are looking for financing alternatives in the form of equity. The solution: going public via a shell company.
Not only established companies, but also solid start-ups and small and medium-sized enterprises (SMEs) are increasingly recognising the opportunities that a stock market listing opens up for financing their business activities or growth.
Just a few years ago, the path to the stock exchange was less open to start-ups and SMEs in particular, as going public was associated with high regulatory hurdles and was very capital-intensive. Nowadays, shell companies offer a far simpler and more cost-effective alternative for going public, which is equally attractive for companies of all sizes and from all sectors.
The main advantages of a shell company compared to a traditional IPO are regularly time savings, cost efficiency, fewer organisational hurdles, great flexibility to adapt the shell company to the company’s requirements and lower risk, as the timing of the start of trading can be planned and implemented in a more targeted manner in view of market fluctuations.
To summarise, it can be said that a shell company enables a quick and efficient IPO and offers companies the opportunity to gain direct access to the capital market in a comparatively uncomplicated manner in order to gain access to investors and equity.
In addition to established companies, more and more start-ups and SMEs are also going public and securing this attractive financing option.In times of challenging markets, inflation worries, fears of recession and rising interest rates, fewer and fewer companies want to forego the opportunity to access their own capital market in order to have access to further financing options and become more financially independent.
