Pros

IPO has the following advantages:

• It allows a company to access a wide pool of public investors.
• Capitals raised from IPO do not need to be paid to the investors.
• No interests are paid to shareholders. Instead, dividends are paid when a company has stable revenues and is profitable. This allows a public company to preserve cash when it is in high demand or the company is not profitable.
• It allows early private investors to sell their stakes either at IPO or later at a stock exchange. Selling a private investors' shares at a public market will not dilute the existing shareholders' ownership in the company.
• It offers a company a way to obtain low-cost working capitals.
• It increases a company's public image and awareness that benefits the company's future sales and profits.
• It is easier to recruit and retain talents via programs such as an employee stock purchase plan, and so on.
• When its stock price is highly valued, equity shares are an effective currency to make strategic acquisitions of other companies.
• It's the best option to raise the largest amount of money.
• It diversifies the shareholder base.
• It opens a door to additional fundraising strategies, for example, warrants, rights, preferred shares, bonds, and convertible debts.