Initial Public Offering or IPO
Going public
Businesses in Germany may also use the option of an Initial
Public Offering or IPO, i.e. The initial offer of shares on the orga-
nized capital market .
Usually, a syndicate carries out
the IPO which requires extensive financial, legal, and tax advice
prior to offering the stock. IPOs enable businesses to raise new
funding to expand their business, or to strengthen their equity
capital base, thus reducing their cost of debt and safeguarding
their credit worthiness.
Employees can be given the option to
participate in the company. An IPO can increase the visibility
and competitiveness of a business. Also, IPOs can be used for
business succession planning and spin-offs.
EU Forecast
euf:ba18f:70/nws-01