Glossary Background

Go Public

To 'go public' means a company gets listed on the stock market by launching an Initial Public Offering (IPO). This process involves receiving approval from existing stakeholders to issue shares to the public. The price of the IPO is determined through two methods:1. Book Building: The price is determined based on demand from institutional investors.2. Fixed Price: The company sets a predetermined price for the shares.Once the price is decided, the shares are offered on the primary market. Not everyone who applies for the IPO may receive shares, as allotment is done based on demand. After the shares are issued, the company transitions from the 'go public' stage to becoming a publicly traded company.