An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance for the first time. In other words, it is the sale of all or part of a private company to the public, which takes place through the listing and sale of shares on the stock exchange. The company decides how many shares it wants to list on the stock exchange and an investment bank proposes an initial price, based on the expected potential demand for the shares. The reasons for deciding on a listing can be various, depending on the circumstances of each individual company. In general, a company decides to list its shares on a stock exchange to increase its investment capital in order to finance expansion, attract and retain talent and resources, or simply to monetise assets. Another reason is the increase of a company’s prestige and image on the market.