WHY DO COMPANIES SEEK IPOS?

An initial public offering (IPO) is a process in which a company offers its shares to investors in exchange for capital by listing them on the public stock market. As a result of an IPO, a company's shares become available for purchase by the general public of investors, including institutional investors and individuals. An IPO often involves the issuance of new shares, but may also involve the sale of existing shares of the company's owners.