Why does a Company Issues IPO shares?
Hello friends why company issue shares Why does a Company Issues IPO shares? A company issues an IPO for a number of reasons. Let us look at each of these reasons in detail: Raising Capital One of the main reasons for IPO is to raise capital for expansion, growth, debt repayment, and for the future. A company needs capital at every stage of its life cycle. It cannot go public immediately after it is established. A company goes through various financing phases to meet its capital needs before going public. Funding stages in a company's life cycle: Self-funding, funding from family and friends. Angel Investors Venture Capitalists Private Equity Investors Bank Loan When the above sources of funding have been exhausted, a company chooses an IPO over another source of funding for the following reasons: Angel investors have already exhausted their capacity. Raising more funds from Venture Capitalists or private equity investors would mean losing control over the company with the majori