What is the full form of IPO?
The full form of IPO is Initial Public Offering. An initial public offering (IPO) is the first time a company issues shares to the public. This is when a private company decides to go ‘public’. Before the IPO, a company has very few shareholders. This includes the founders, angel investors and venture capitalists. But during an IPO, the company opens its shares for sale to the public. As an investor, you can buy shares directly from the company and become a shareholder.
This guide will break down the steps involved in the process, which can take anywhere from six months to over a year to complete. Below are the steps a company must undertake to go public via an IPO process:
The first step in the IPO process is for the issuing company to choose an investment bank to advise the company on its IPO and to provide underwriting services.