New-Japan Business Consulting
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Business Consulting

Initial public offering (IPO, listing) and benefits

What is an IPO (IPO, listing)?

An IPO is when the shares of a joint stock company are made available for trading on the open market (e.g. on various stock exchanges). An IPO (Initial Public Offering) is a public offering or sale of shares in connection with a listing or public offering. When a company goes public on the market, it can raise funds directly from the market to finance its business development, which is expected to facilitate its business development by improving its name recognition and social credibility. As a result, secondary business management benefits can be expected, such as speeding up management and making it easier to secure excellent human resources. In addition, although it is difficult to say, it can be said that not only direct financing from the market through listing but also indirect financing from financial institutions will facilitate easier business development because of the difference in creditworthiness between unlisted companies and unlisted companies. In view of the above, IPOs can be a very effective means of business development in today’s fast-changing market environment, from the perspective of management strategies such as securing a company’s competitiveness and market share.

Advantages/disadvantages of IPOs

The main advantages and disadvantages of listing a company’s shares are as follows ● Advantages
1. stable funding through direct financing
2. increased visibility and credibility of the company
3. easier to secure excellent human resources
4. realisation of founder’s profit
5. Strengthening of financial position
6. Improved management level
7. Improved employee awareness
8. Introduction of incentives
9. reduced corporate taxation


1. emergence of unfriendly shareholders -> secure stable shareholders
2. increased administrative work related to shares
3. IR obligations