What is one of the key reasons a company might choose to go public?

A company might choose to go public primarily to access capital markets for growth. When a company issues shares to the public through an initial public offering (IPO), it can raise significant amounts of capital from a broader investor base. This influx of funds can be crucial for various strategic initiatives, such as expanding operations, funding research and development, paying off debts, or making acquisitions.

Accessing capital markets allows companies to raise equity without the obligation of repayment that comes with debt financing. This capital can enable a company to pursue growth opportunities that might otherwise be unattainable if it were limited to internal cash flow or private funding sources. Additionally, going public can enhance a company's credibility and visibility in the market, which can further fuel growth and investment opportunities.

In contrast, remaining a private entity indefinitely does not facilitate accessing new capital, while reducing visibility and accountability runs counter to the transparency that public companies must adhere to. Limiting available capital would hinder a company's operational capabilities and growth trajectory, which is not a consideration for choosing to go public. Therefore, the desire to access capital markets for growth stands as a primary motivation for a company considering an IPO.