Initial public offering

An initial public offering (IPO) is the process of listing your business on a stock exchange.

  • You sell shares in your business over the stock exchange.
  • Shareholders collectively are the owners of your business.
  • The money you raise can be used to finance your business.
  • The profits you make are shared among the shareholders.

While an IPO has benefits and can result in greater liquidity for your business, an IPO is not a good option for all businesses. There are drawbacks, including:

  • The high cost of the IPO itself
  • Complex accounting and reporting requirements
  • Potential pressure from investors to focus on short-term results rather than a long-term growth strategy

Businesses should seek the advice of experts in the field when proceeding with an IPO.

IPO resources:

KPMG - Going Public Guidebook
This guide provides information on four key phases of going public: deciding, preparing, executing and continuing.

TMX - Steps to Getting Listed on the Toronto Stock Exchange
The TMX Group outlines the steps a company must take to get listed on the Toronto Stock Exchange.

Date Updated:
RDP-2522