Why Company Launch Its IPO

There are several reasons why a company may issue an initial public offering (IPO) in the stock market:

Raise capital: One of the primary reasons for issuing an IPO is to raise capital for the company. This capital can be used to fund expansion plans, pay off debts, or invest in new projects.

Increase visibility and credibility: Going public can increase a company's visibility and credibility, as it is now subject to increased scrutiny and regulations. This can help attract new customers, employees, and investors.

Valuation: An IPO can provide a valuation of the company, which can be used as a benchmark for future fundraising rounds or mergers and acquisitions.

Liquidity: An IPO can provide liquidity to existing shareholders, allowing them to sell their shares in the open market.

Employee incentives: An IPO can be used as a way to incentivize employees by offering them stock options.

Branding: An IPO can be used as a branding tool and can establish the company as a reputable and successful business.

Exit strategy: An IPO can provide an exit strategy for the company's founders and early investors.