Initial Public Offerings, as known as IPO, is an offering process in which shares of a company are open for sale to the public in the stock exchange, by which a private limited company is transformed into a public company. As a public company, it has to be abide by a series of regulations and its shares can be traded freely in the open market by the public.
Turning a private company into a public company is advantageous, such that:
- Raise significant capital
- Increase financing options
- Enhance brand value and market influence