Why Go Public?

Going public can raise a lot of money and being publicly listed also opens many financial doors:- 
Because of the increased reporting requirements, public companies usually get better rates when they issue debt, as they are perceived to be more secure.

  • A public company can always issue more stock as long as there is demand in the market. Mergers and acquisitions are also easier because stock can be included as part of the deal.
  • Trading in the open markets results in an increase in liquidity and this makes it easy to implement employee stock ownership plans, which can help to attract and retain key people.
  • Listing on a major stock exchange carries a degree of prestige as only those companies with strong fundamentals can qualify and list successfully.
  • An effective IPO Program guides companies through the IPO process, and secures any funds that may be required.
  • While there are some large and successful companies that are still privately-owned, most companies aspire toward becoming a publicly-owned company so that they gain another source for raising funds for operations and business expansion.
  • An initial public offering (IPO) represents a private company’s first public offering of equity to private and institutional investors.
  • This process is generally considered to be very intensive with many regulatory hurdles to clear.
  • While the formal process to produce the IPO is a well documented and structured process, the actual transformational process from a private to a public firm is a much more difficult one. 
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