A successful IPO can raise vast sums of money. Alibaba's initial public offering (IPO) on the New York Stock Exchange (NYSE) in 2014 raised more than $20 billion. Being listed on a stock exchange increases a company's exposure, prestige, and public image, which means that IPOs can increase the firm's future sales and profits and provide a more accurate valuation of a stock.

A float can be a great way for traders to buy a share of a company - or take a position on its price trajectory - the moment it hits the stock market. IPOs also increase market liquidity, making it easier for buyers and sellers to fill orders.

An Initial Public Offering (IPO) offers several advantages for companies and investors. For companies, it provides access to significant capital, enabling expansion, debt repayment, or investment in innovation. Going public enhances a company’s credibility and visibility, attracting customers, partners, and top talent. It also creates liquidity for early investors and employees by allowing them to sell shares.

For investors, IPOs offer an opportunity to invest in promising companies at an early stage, potentially yielding high returns as the company grows. Publicly traded stocks provide transparency, as companies must disclose financial performance and adhere to regulatory standards. Additionally, IPOs diversify investment portfolios, offering exposure to new industries or markets. Overall, IPOs can be a win-win, fostering growth for companies and creating value for investors.