Initial public offering is a process through which private companies for the first time offer their shares to the general public.Through this important process companies transform from private to public company. Mostly companies benefit from the services of investment banking firms mostly working as underwriters to undertake this complicated but very important process. Undertakers have many jobs to do, but their most important job is to calculate the value of initial shares and also creating a good market for the IPO of the company.
IPO offers lots of advantages to the companies, as money paid by the general investors is directly deposited into the company account. It also helps the company to search for large number of investors for growth and development of the company in the near future.