Initial public offering (IPO)
Going public, IPO, public offering, listing, flotation - how many ways can we talk about the same thing?
It sounds more complicated than it is. An Initial Public Offering is just that – the first time a private company’s shares are offered to you and me – ‘the public’ or ‘retail investors’.
An IPO can raise money for a company, broaden its shareholder base, and provide liquidity and publicity.
It also comes with costs and obligations, including adopting corporate governance codes and producing financial statements.
A sale of shares to institutional or large investors is referred to as “private placement”.