An IPO, or Initial Public Offering, is a company’s way of opening its doors to the public. Before going public, a company is typically owned by a small group—like founders, early employees, or private investors. But when it decides to launch an IPO, it essentially puts its shares up for sale on a stock exchange, inviting everyday people and institutions to become shareholders.

So why do companies do it? One big reason is to raise capital. Listing on the stock market gives companies access to a larger pool of money, which they can use for expansion, paying down debt, or funding new ideas. It’s often seen as a big milestone—a sign that the company is ready to grow beyond its private roots. But going public also means more responsibilities, more scrutiny, and a need for transparency in everything from finances to decision-making.

From a company’s perspective, launching an IPO is like stepping into the spotlight. It’s a move that brings both opportunities and new challenges. On the plus side, it gives the business credibility and often helps it gain media attention and trust. With a public listing, it becomes easier to attract top talent, secure partnerships, or make acquisitions using its shares.

But there’s a flip side too. A public company must follow strict rules, report its earnings regularly, and answer to shareholders. Decisions that were once private now involve public opinion, analysts’ views, and market pressure. Still, for many companies, the benefits outweigh the downsides. It’s a bold move that signals ambition, maturity, and a desire to grow on a larger stage.