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The purpose of an Initial Public Offering is to offer shares of a company to the public for the very first time. An initial pricei is set for the share and then investors from across the country can opt to invest in the IPO. Once an IPO is complete, a good % of shares of a company are owned by the public and and the stock gets listed in a registered stock exchange like NYSE.

The purpose of an IPO for that company is to raise working capital. The money raised through the IPO is used by the company for expansion projects, meet its capital requirements etc.


For raising the capital from the public directly
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12y ago
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Q: What is the purpose of initial public offering?
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