Why do companies have an Initial Public Offering?

Companies issue shares on a stock market for a number of reasons;

  • To access initial capital and potentially for future capital raising
  • To allow a majority shareholder such as the Government or a private equity fund to realise a sale of its interest in the company
  • To create a wider shareholder base for the company
  • To provide the ability for the company to use its quoted share capital to fund acquisitions