WHY GO PUBLIC
Going public and offering your stock in an Initial Public Offering (IPO) represents a milestone for most privately-owned companies. One of the key benefits and going public is the ability to raise funds needed for the company’s expansion and reduce the huge burden of having to borrow money from the banks and paying the high interest rates.
Going public also gives the company greater credibility, better image and brand equity as a publicly listed company. One of the biggest advantages for a company to have its shares publicly traded is having their stock listed on a stock exchange.
The main reason companies decide to go public, however, is to raise money - a lot of money and enable the original shareholders to cash in some of their profits while still retaining a percentage of the company.
Raise funds by issuing the stocks
Acquire other companies through the stocks
Offer stock options to recruit and retain top talents
Greater credibility, better image and brand equity as a publicly listed company
Attract the attention of mutual and hedge funds, market makers and institutional traders