It gives us great pleasure to be a part of this IPO Summit, 2016. We endorse the Summit's aims for cultivating a favourable environment for "listing" in the Country. Adam Smith, the father of modern economics, illustrated in his book "The Wealth of Nations" how greater output could be achieved through division of labor by giving them one small task each in building a complex good/article. This was the miracle of "specialised labor" that was key to productivity led industrialisation. In the corporate sector, Ford Motor Company was one of the first to follow this breakthrough.
A same kind of miracle has been performed by the Capital Markets that has proven as a catalyst to economic Growth and has triggered Wealth Creation Process for the whole Society.
We strongly believe that stock markets are a catalyst to economic development through access to finance [primary market] by perpetual funding augmented with reduction of financial risk. It is the beauty of this market where the initial owners may en-cash their investments and can run two businesses instead of one (with the same equity) with constant ability to raise further capital due to the valuation for the stock offering which may be very generous particularly when the market is booming. The economic development wheel may further be accelerated, if this important tool of resource mobilisation can be extended to cross border regions.
Despite all the obvious benefits, Companies are still reluctant to opt for "listing". This can only mean that either companies are ignorant or the Stock Markets are not able to pitch "listing" as well as they ought to. In order to get ahead, Stock Markets must sort this out in a manner that the companies are able to visualise the miraculous benefits of "listing" waiting to happen.
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