An IPO (Initial Public Offering) is primarily aimed at raising capital, allowing a company to bolster and diversify its capital base by providing access to a broad and global investor base. It also opens the door to many other financing opportunities, including the issuance of further equity or for convertible bonds, and reduces the cost of traditional borrowing through bank loans.
An IPO brings greater flexibility in managing the relationships of key stakeholders with a firm. For owners or shareholders, it provides the opportunity to raise liquidity or exit their stake in a company. For employees and managers, share options align their interests with the company over the long-term, helping you to hire, retain and motivate the best people.
For Finally, an IPO can turbo-charge your company’s growth both organically - through the enhanced visibility and credibility it brings to your brand - and through the M&A market by enabling you to make acquisitions through stock as well as cash.