What is IPO

An Initial Public Offering (IPO) signifies the inaugural release of a company's shares to the general public. This strategic financial manoeuvre opens up the accumulation of equity capital to public investors, transforming the company into a publicly traded entity where shares are available for purchase by anyone. The IPO serves not only as a means to raise capital but also has the potential to enhance the company's public image while simultaneously reducing its equity and debt costs. Before an IPO, the company is considered a private entity, with a limited number of investors, including early contributors like founders, family, and friends, as well as professional investors such as venture capitalists and angel investors.