“An Initial Public Offering (IPO), referred to simply as an "offering" or "flotation", is when a company (called the issuer) issues common stock or shares to the public for the first time.”

There are several benefits for being a public company, namely:

· Bolstering and diversifying equity base
· Enabling cheaper access to capital
· Exposure, prestige and public image
· Attracting and retaining better management and employees through liquid equity participation
· Facilitating acquisitions
· Creating multiple financing opportunities: equity, convertible debt, cheaper bank loans, etc.
· Increased liquidity for equity holder



Further public offer (FPO) or Follow on offer: When an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, it is called a follow on offer (FPO).
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