Mastering Pre-IPO Preparation for a Public Listed Company
Throughout the last 5 years, there has been more than 90 companies in Indonesia that have made their stock trading floor debuts, including the 6 companies going public in the first semester of 2016. On average, about 20 to 30 companies in Indonesia go from private to public ownership status by selling their shares on the stock market each year.
Private companies go public for a number of reasons. Some go in the hopes of attaining large capital gains for future expansions while others just do it for the prestige of having their shares publicly traded.
Private equities, venture capitals, and even the company’s founders, often use an IPO as a convenient way to exit to the public. Shareholders do not need to let go of all their ownership at once, rather they could sell their shares in portions in order to minimize business succession risks. In order to make an IPO successful, there are several things that you need to consider such as the timing, effort, and preparation required.