The IPO is the Initial Public Offerings. An initial public offering is when a company (issuer) sells its shares to the public for the first time. Usually, the shares of a listed company are sold through brokers or market makers according to the terms agreed in the prospectus or registration statement issued by the corresponding securities company. Generally speaking, once the initial public offering is completed, the company can apply for listing on the stock exchange or quotation system.
 
※ Advantages
1. Achieve asset securitization, enlargement of corporate value and shareholder value.
2. Equity financing platform.
3. Improve the ability of debt financing.
4. Brand and popularity are improved.
5. Promote market development.
6. Promote the standard operation of enterprises.
7. Conducive to attracting superior talents.
 
※ Disadvantages
8. Government regulation is strict
9. Information transparency disclosure requirements = operator pressure increases.
10. Equity dilution may even lose control.
 
※ to sum up
1. There are many advantages in listing, but the disadvantages are also very prominent. The overall advantages are far greater than the shortcomings.
2. For companies that want to amplify corporate and shareholder value, hope for financing expansion, and leverage the securities market to enhance their strength, listing is the best way to achieve these three goals.
3. For a company with strong strength and sufficient capital, depending on the wishes and development expectations of the controller, it may not necessarily choose to go public.