How Does an IPO Work?
Preparation:
Companies can raise substantial amounts of money to fund expansion, research and development, and other business activities.
Valuation:
Being listed on a stock exchange enhances a company's visibility and prestige, often leading to greater trust from customers and partners.
Roadshow:
Existing shareholders, such as founders and early investors, gain an opportunity to sell their shares and realize profits.
Pricing:
Publicly traded shares can be used as currency for acquisitions, allowing for strategic growth through mergers and acquisitions.
Trading Begins: :
Once the shares are listed on the stock exchange, public trading begins, and the company officially becomes a publicly traded entity.