Question 1
According to the requirements, Callimbah Inc. is a limited liability company. As a company like this, there are many advantages when it decides to list on the ASX in an initial public offering. Here are some reasons. First of all, if the company listed on the ASX, it will provide entrance to a large equity capital market which is an unlisted company does not have. Therefore, into this market, the company’s equity capital will be rising because more business activities and more funding base to the activities will be expending. Thus the company will have more cash inflow in the future. What is more, share issued by listed company is more liquid than an unlisted company, that is, the share can easily be sold through a stock exchange, new company listed like Callimbah Inc. is referred as a new float or an initial public offering. Thirdly, listed on the ASX will bring more investments. Because it is an attractive to investors to thinking of whether invest this company. Another advantages is it raises its profit which can get more cash inflow for its goods, services and so on. On the one hand, if the company is listed, it can raise funds through financing. Two types of financing are debt and equity financing. What is more, debt financing means you can take out a loan or issue bonds in order to obtain a building, equipment or other assets. The company gets money then it can use them to running their business. Equity financing often means issuing additional shares to an investor which means the issuer share the risks and liabilities of company ownership with the new investors. All the fund can be use to keep running their business or do other investments. Final but not least, listed in an initial public offering means there will be underwriters to insurance a company raises the full amount of the issue.
As for the shareholders ‘regulatory environment for