View source for Initial public offering

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An initial [[public]] offering (IPO) is the first sale of stock by a [[private company]] to the public. IPOs are often launched by companies seeking [[capital]] to expand their business. Once an IPO occurs, a company will be listed on a [[stock exchange]], and [[shares]] will begin to [[trade]].

IPO costs are typically 7.5% to 8.5% of the value of the company, including [[underwriter]]'s [[commission]], legal and accounting fees, investor relations, printing, [[road show]] and an initial listing fee. For a $25 million offering, that's between $1.875 million and $2.125 million. 

The number of IPOs in the U.S. has been decreasing steadily since the technology bubble in 1999-2000. They've been replaced in large part by [[PIPE]]s due to the rising costs of an IPO.

== References ==
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[[Category:Public Companies]]