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چکیده
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The Purpose of this paper is to understand that companies would like to stay private or conduct an IPO. The IPOs of any company is one of the most important moments in its corporate life-it only happens once, and it is special opportunity for them to conduct an IPO. There are two types of IPOs: good IPO and bad IPO; Good IPOs are like happy families-they share a number of characteristics. And bad IPOs; there are many ways in which a company can be fundamentally flawed. It can have a questionable business model, face daunting competition, or be a little fish in a big pond. The reasons why an IPO is particularly bad fall into one of two categories: (i) fundamentals and (ii) management issues. When one of the private firms goes public successfully (or unsuccessfully), the other actors in the economy obtain new information about the aggregate conditions i.e., a successful (or failed) IPO is the event that aggregate this privately held information; i.e., if the first IPO fails, it will incur monetary and reputational costs, if successful, it will draw in many more IPOs due to social learning among firms. According to some researchers motivations for going public are as follows: (i) the cost of capital literature (ii) an IPO allows insiders to cash out, (iii) IPO may facilitate takeover activity, (iv) IPOs may serve as strategic moves, (v) primary motivate for going public is to fund growth opportunities.
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