Pre-IPO Stage:

• • Before an IPO, the company is private.

  • It has a small number of shareholders, including founders, family, friends, and professional investors (venture capitalists or angel investors).

  • The public—individuals and institutional investors—can’t invest until the company’s stock is available for sale.

IPO Process:

• • Companies hire investment banks to facilitate the IPO process.

  • The company issues new shares to existing shareholders or the public.

  • These shares are listed on stock exchanges and traded in the secondary market.

Benefits of an IPO:

• • Capital Raise: Companies can obtain significant funds for growth and expansion.

  • Exit Strategy: Founders and early investors can realize profits from their private investment.

  • Influence Retained: Even after an IPO, founders and early investors maintain influence in company management.

Remember, an IPO is a critical milestone for companies, allowing them to access capital and engage with a broader investor base.