What is an IPO
IPO (Initial Public Offering) is the process by which a company offers its shares to the public on a stock exchange for the first time and becomes a publicly traded entity. After the IPO, the company’s shares are available for purchase by a wide range of investors.
The primary goal of going public is to raise capital. By offering a portion of its shares, the company raises funds. These can be used to expand operations, launch new products, enter new markets, or repay debts. At the same time, it becomes more transparent. It must publish financial reports, follow stock exchange rules, and meet public company standards.
This public offering is more than just a financial milestone. It marks a shift to business maturity, where public trust and regulation become key factors. For startups and tech giants alike, going public often represents the culmination of years of growth. It also starts a new business chapter.
IPO vs. other fundraising methods
- Venture capital — usually at early stages of development;
- Private placement — raising funds without going public;
- Direct listing — listing shares without issuing new ones.
For example, Spotify chose a direct listing in 2018, bypassing traditional IPO underwriting. Meanwhile, companies like Airbnb and Snowflake opted for traditional IPOs on NASDAQ and NYSE respectively.
Key stages
- Preparation: financial audit, choosing a jurisdiction and stock exchange, working with investment banks;
- Valuation: setting the company’s value and share price;
- Roadshow: a series of presentations to potential investors;
- Listing: the first day of trading on the exchange;
- Post-IPO life: ongoing reporting, investor relations, and market compliance.
Leading IPO destinations include NASDAQ, NYSE, London Stock Exchange, and HKEX.
IPO and Telegram
As a major tech platform with a large user base, Telegram is occasionally mentioned in the context of a potential IPO. While no public offering has taken place as of this writing, the topic remains relevant in discussions about monetization, transparency, and the company’s long-term strategy.
