An IPO is an Initial Public Offering. This is the initial sale of stock to the public from private investors and holders of the company. There are several reasons why a company would issue stock to the public. Publicly traded stock allows the company to offer shares in mergers and acquisitions, easing the mechanism in purchasing other companies and lowering the cost. Publicly traded stock also allows the company to offer incentives to employees, by giving shares of stock. The greater exposure and publicity also help retain and attract talented employees and management. The value of a company is also higher compared to when it’s private. This is because increased levels of liquidity and transparency are more attractive to investors, who will allocate a higher multiple for the company’s value. The biggest downfall to a company issuing stock to the public is greater scrutiny from investors, as all financial records are made public. This comes in the form of an increase in legal and marketing costs, plus time spent with analysts and other investors explaining the inner workings of the company.
How Uber Has Earned a Surprising $40.0-Billion Valuation
Many companies get their start by capitalizing on an untapped niche market, but few have upended an entire industry like Uber. Fewer still have been as polarizing. Toss in a valuation of $40.0 billion and you can see why so many investors are hoping Uber lists publicly in 2015. B… Read More
Coming off a banner year of 273 initial public offerings (IPOs) in 2014, there’s much anticipation surrounding a possible Uber IPO in 2015… Read More.
Uber’s $41.0-Billion Valuation
As far as IPOs go, 2014 was a significant year. The last time the markets saw so much activity was during the halcyon days of the dot com era, when 400 companies d
SpaceX IPO the Final Frontier?
Is an initial public offering (IPO) the final frontier for SpaceX… Read More? Investors might be interested in gravitating toward a SpaceX IPO, but the company doesn’t seem to be in any rush to jettison private life.
SpaceX, a sort of private NASA, was founded in 2002 by Elon Musk. No one-hit wonder, Musk is also fa
Xiaomi: China-Based Mobile Phone Upstart to Be Hottest IPO in 2015?
In the crowded mobile market with a brutally high barrier to entry, Xiaomi Technology Ltd. Co. … Read Morehas gone from zero to hero in just a few short years. With a $45.0-billion valuation, Xiaomi is expected to be the hottest initial public offering (IPO) in 2015.(1) And nothi