An IPO (Initial Public Offering) allows a private company to become publicly traded, offering shares to the public for the first time. One major advantage is access to capital, which can be used for growth, research, or debt reduction. Going public also enhances brand visibility and credibility, potentially attracting new business opportunities and partnerships.

Despite its benefits, an IPO also comes with challenges. It introduces strict regulatory requirements, ongoing financial disclosures, and public scrutiny. Companies must meet compliance obligations set by market regulators, which can increase administrative costs. Additionally, there’s pressure to meet market expectations and deliver consistent performance, which may shift focus from long-term strategy to short-term results.