What Is Going Public?

What is Going Public?
When a private company decides to sell some of its shares to the public by “joining” or listing on the Stock Exchange, the company is referred to as “going public”. As a private company owner, you are opening up your company for public investment by giving members of the public the opportunity to purchase shares in your company. Your company is termed “public” when it has a share float on the Stock Exchange.

Reasons for Going Public
Some reasons for a private company listing as a public company include the following:

  • The business needs extra capital to expand.

  • The owners of the business may want to retire so they look to sell their shares to the public as a means of cashing in on all their hard work.

  • The owners of the business may want to realise their profits to provide for the funding of other investments or other personal needs.

  • The investors in the company want to cash in their investment and make a profit from the risk they have taken (e.g VC investors).

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