What is an IPO


What is an IPO? 

The meaning of going public 

Going public with a company is when an unlisted company sells equity securities to the public for the first time. They allow the public to purchase their old or new stocks. This initial public offering (IPO) is an important event for an organization, as the public helps the company grow in raising capital.

The advantages of an IPO

Taking your company public provides benefits including: 

  • Increased capital: an IPO can provide your company with extra funds to be used in acquiring other businesses, meet working capital needs or expand research and development.
  • Increased visibility: going public will give you media exposure covering the financial markets, this could enhance your company brand and reputation.
  • Liquidity: a public company creates a market stocks, meaning that the public provides liquidity for your employees, management and existing investors.
  • Raise capital in future: if your stock performs well in the stock market, you can sell additional stock on favorable terms, raising extra capital for future investments. 
  • Improved credibility with business partners: once you are public company, more information on your company can be found for suppliers, distributors and customers. Customers and suppliers may feel more secure about entering a relationship with your company. 

Preparing for an IPO during challenging markets?

Challenging macroeconomic conditions over the past year have delayed the majority of IPO processes globally. However, given the long lead time to prepare for IPO, performing a readiness assessment now provides companies with the chance to exploit first mover advantage when markets reopen. In the Q&A we answer key questions for companies that are considering going public. For example: 

  • When is the right time to start preparations for an IPO? 
  • Are there any common pitfalls or areas that businesses most frequently need to address?
  • What are the most important areas to evaluate when planning for an IPO?

Going public during challenging markets?

IPO readiness Q&A


Why Deloitte for you IPO process?

An IPO readiness implementation will help your company to the next stage of maturity; tighter governance, a fresh perspective of your financial data and better internal control. Deloitte can support you in preparations for an IPO including an IPO readiness scan, IPO readiness support, advising in IFRS and preparing for due diligence and more. Our support enables you to realize an optimal outcome of your IPO process! 

Is your company IPO ready?

Have you ever wondered if your company is ready to go public? Taking your company public can seem like an arduous task. It's a complex and highly regulated process. Knowing the fundamental requirements and assessing your company's level of IPO readiness will help to identify areas of improvement and enable you to start planning for a successful IPO.

With the help of our free of charge IPO Scanner tool, you will get useful insights on how ready your company is to go public. The tool will take you through some questions and based on the responses we will provide you with a tailored readiness score. For example, the report will give you an advise on your Equity story or Financial Reporting. 

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