What is an IPO?

Thursday 28th August 2025

Last updated: 17th October 2025

  • Cash flow challenge: My business has grown rapidly and I’m considering going public to raise large-scale investment and fuel the next stage of expansion.

  • Perfect for: Established businesses with strong performance and growth potential, looking to raise significant funds by listing on a stock exchange.

Novuna helps businesses explore equity finance options such as IPOs. We guide you through the process, compare providers, and ensure you access the right funding advice for your goals.

 

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What is an IPO?

An Initial Public Offering (IPO) is when a private company offers its shares to the public for the first time by listing on a stock exchange.


This process allows a business to raise substantial capital from a wide pool of investors. It also provides liquidity for existing shareholders and increases the company’s visibility.


Benefits of an IPO

  • Access to significant funding - raise funds for expansion, acquisitions, or paying down debt.
  • Increased profile - a listing boosts brand awareness and credibility.
  • Liquidity for shareholders - founders and early investors can sell shares.
  • Attract and retain talent - offering share options can incentivise employees.

Challenges to consider

  • High cost and complexity - legal, regulatory, and underwriting costs are significant.
  • Public scrutiny - financial performance and decisions are under constant investor review.

  • Loss of control - ownership is diluted, and external shareholders gain influence.

  • Ongoing reporting requirements - listed companies must meet strict disclosure rules.


When to consider an IPO

An IPO may be the right option if your business:

  • Has strong revenue and profit growth
  • Needs access to large-scale capital for expansion

  • Operates in a sector with investor interest and scalability

  • Is prepared for regulatory obligations and shareholder expectations

Alternatives to an IPO

Other funding routes include:

  • Venture capital for large scale private investment
  • Private equity funding without going public

  • Business loans for debt based growth funding


How Novuna Business Cash Flow helps

Novuna supports businesses in accessing equity and debt finance, including preparation for large-scale funding like IPOs. We’ll help you explore your options, compare providers, and secure the right solution for your long-term goals.

We compare a range of providers to get you the right product and the best deal

Fast decisions. Flexible options. Funding over £2bn to more than 1,000 SMEs every year.

Complete the form below to compare and save with Novuna Business Cash Flow:

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