What are the pros and cons of IPO (Initial Public Offerings)?

An IPO accords several benefits to the previously private company:

• Enlarging and diversifying equity base
• Enabling cheaper access to capital
• Increasing exposure, prestige, and public image
• Attracting and retaining better management and employees through liquid equity participation
• Facilitating acquisitions (potentially in return for shares of stock)
• Creating multiple financing opportunities: equity, convertible debt, cheaper bank loans, etc.

Disadvantages

There are several disadvantages to completing an initial public offering:

• Significant legal, accounting and marketing costs, many of which are ongoing
• Requirement to disclose financial and business information
• Meaningful time, effort and attention required of senior management
• Risk that required funding will not be raised
• Public dissemination of information which may be useful to competitors, suppliers and customers.
• Loss of control and stronger agency problems due to new shareholders

I agree with Mr. Khaled answer

I support the answer of Mr. Khaled Mohy Eldin Abbas Mahmoud. 

AGREE WITH MR KHALD ANSWER