Listing shares on a stock exchange is a process that allows a company to offer its ownership stakes, or shares, to the public for trading. This usually happens through an Initial Public Offering (IPO), where a private company decides to become publicly traded. The first step is meeting the eligibility and regulatory requirements set by the exchange, which may include financial thresholds, minimum market capitalisation, corporate governance standards, and disclosure obligations.

The company then works with investment banks or underwriters to prepare the IPO. These underwriters help determine the offering price, number of shares to be issued, and the best timing for the launch. At the same time, the company must prepare detailed documentation, such as a prospectus, which provides potential investors with information about the firm’s financial health, business model, risks, and growth prospects.

Once the application is reviewed and approved by the exchange and relevant regulators, the shares are officially listed. From this point, they can be freely bought and sold by investors in the secondary market.

Being listed provides a company with greater visibility, improved access to capital, and credibility among investors. However, it also requires ongoing transparency, regular reporting, and compliance with the exchange’s rules, which can be demanding for management and costly to maintain.