Why do SME companies go public?

Question

Why do SME companies go public?

Accepted Answer · 2023-04-07

There are multiple reasons for an SME IPO to go public; above all, funding is the primary reason. SMEs issue shares to the public to raise funds to finance future growth. Apart from this, there are enormous benefits of SME IPO issues as follows;

Listing of SME shares on the SME platform/exchange improves credibility and transparency.
It provides interested investors with a platform to invest in quality shares at the early growth stage.
SMEs can generate the required amount of funds to finance operations, diversification, acquisition, new product development, and many more.
Going public via IPO increases public awareness, media coverage, and visibility.
Share listing increases investors' participation and engagement.

Why do SME companies go public?

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