An IPO (Initial Public Offering) is when a private company sells its shares to the general public for the first time, transforming into a publicly traded company. It's a major milestone in a company's lifecycle.
The primary purpose of an IPO is to raise capital. Companies use these funds for business expansion, debt repayment, research and development, or other corporate activities.
In Bangladesh, the Bangladesh Securities and Exchange Commission (BSEC) regulates the IPO process. Companies must meet requirements for profitability, minimum capital, and compliance before going public.
IPOs give investors a chance to participate in a company's growth from an early stage, but they also carry risk since new listings have uncertain performance.
After the IPO, company shares are listed on stock exchanges and begin trading in the secondary market, where prices are determined by supply and demand.