An Initial Public Offering (IPO) is a financial operation which consists in selling the securities of a company on a stock market. Thus, it favors to the company in question, which is small or large in size, the opening of its fund to new investigators of investments, in this case institutions, individuals or employees. And this, in order to finance their projects, optimize the growth of their structure or develop their reputation.
Why go public?
Listing one's company on the stock market means making the decision to raise capital on a stock market. Generally, there are three situations that can arise, depending on the status and objectives of the company. More details here https://www.erowz.fi. One of them is related to the desire of the company to make new investments without referring to its current shareholders or bankers Another situation is related to the will of the company to minimize its indebtedness. Indeed, it should be noted that it is listed in the balance sheet of the capital it owns and not in the debts. Finally comes the last one, which concerns the company's decision to make its capital accessible to attract new investors.
How to go public?
To list a company on the stock market, it goes through a number of procedures which, thanks to the work of the investment services provider (ISP) handling the listing, must best meet both the specificities of the company and the state of the market. The open price offer (OPO): reputed to be the most used procedure, it consists for the company wishing to be listed on the Stock Exchange in defining a financial establishment which will be in charge of constituting a "banking syndicate". The firm price offer (OPF): the company and the financial intermediary are called upon to define in advance the number of shares already in vogue on the market as well as their selling price.