Initial Public Offering

An Initial Public Offering (IPO) is the first sale of a company’s shares to the general public, enabling it to raise equity capital from a broad range of investors. After an IPO, the company becomes a publicly traded entity, and its shares are listed on a stock exchange for buying and selling. Key Features of an IPO First Public Sale of Shares Marks the transition from a private company to a public company. Capital Raising Provides funds for business expansion, debt repayment, research & development, and other strategic purposes. Broad Investor Base Shares are offered to general public investors, in addition to institutional investors like mutual funds and banks. Regulatory Compliance Companies must adhere to securities regulations and disclose financial and operational information in a prospectus. Benefits Enhances public image and credibility Reduces the cost of capital Provides liquidity to early investors Before IPO Company is private with limited investors such as: Founders and family Friends Venture capitalists and angel investors