An IPO can fund innovation, growth and acquisitions, and maximise value

Among other things, an IPO can garner attention and create better brand recognition. Photo: iStock
For some companies, an initial public offering (IPO) — a stock market flotation — is seen as the best way to access capital on the public markets. What are the benefits of an IPO? Are there any disadvantages? And is it only for large companies?
An IPO is the sale of a company’s shares to the public and the listing of shares on a stock exchange for the first time, says Fergal McAleavey, corporate finance partner at EY Ireland.