IPO
IPO stands for Initial Public Offering, which is the process by which a Private Company offers its Shares to the public for the first time. This allows the company to raise Capital from public investors.
During an IPO, a company typically hires investment banks to help determine the initial price of the Shares, file necessary paperwork with regulatory bodies, and market the offering to potential investors.
Examples of notable IPOs include:
- Facebook (2012): Facebook’s IPO raised $16 billion, valuing the company at $104 billion and marking one of the largest tech IPOs at that time.
- Alibaba (2014): Alibaba’s IPO raised $25 billion, making it the largest IPO in history at that point.
- Uber (2019): Uber’s IPO raised $8.1 billion, valuing the company at $82 billion on its first day of trading.
IPOs can serve as a critical milestone for a company, providing funds for growth, increasing its visibility, and allowing early investors and employees to realize some of their gains.