Why does a company choose to undertake an IPO?

A company ‘goes public’ to raise finance for its business. The proceeds from an IPO may be used for capital expenditure, paying off debt, product or business development, growth or geographical expansion opportunities and more.

In addition to raising finance, an IPO is a valuable opportunity for the company to raise its profile and generate publicity, attract public market investors, and demonstrate to its investors that it will be submitting itself to a rigorous corporate governance and reporting regime.


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