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Companies go public for 2 reasons: 1) as a way for funders and investors to cash out or 2) to raise money since their other sources have dried out. If the ipo
by WheelsAtLarge 9y ago
Companies go public for 2 reasons: 1) as a way for funders and investors to cash out or 2) to raise money since their other sources have dried out.
If the ipo was not enough, I doubt they will be able to raise any more money at any reasonable valuation. They have a tough road ahead.
- eldavido 9y agoYou're forgetting a major third reason: to have a currency to do acquisitions. If your stock isn't publicly traded, you can't issue shares to buy new companies. Most acquisitions aren't all cash, they're a mix of cash and stock.
- adrr 9y agoOr to supplement capital investments beyond getting loans. Building out a logistics chain for any food company is very expensive.