IPOs

IPOs, or Initial Public Offerings, refer to the process through which a private company offers its shares to the public for the first time. This transition from private to public status allows the company to raise capital from a broader group of investors. During an IPO, a company typically works with investment banks to determine the offer price of the shares and the overall number of shares to be sold. After the IPO, the shares are traded on a stock exchange, making them accessible to public investors. The process often involves thorough financial disclosures and regulatory approvals to ensure transparency and compliance with securities laws. Companies may choose to go public to raise funds for expansion, pay down debt, or increase their public profile. An IPO can be a significant milestone for a company, as it often provides liquidity for existing shareholders and can enhance the company’s credibility and visibility in the market.