Why IPO? What are the advantages and disadvantages of a company going public?

Advantages of IPO：

This ability to quickly raise potentially large amounts of capital from the marketplace is a key reason many companies seek to go public. Capital can be used to fund research and development (R&D), fund capital expenditure, or even used to pay off existing debt.

IPO also brings these benefits to the previously private company:

Increasing exposure, prestige, and public image

Facilitating acquisitions (potentially in return for shares of stock)

Enlarging and diversifying equity base

Creating multiple financing opportunities: equity, convertible debt, cheaper bank loans, etc.

Attracting and retaining better management and employees through liquid equity participation