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What determines how many shares a company issues during it's IPO?

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posted Jul 17 by Kavana Gowda

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1 Answer

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There can be various factors, but a primary reason is the need or desire to raise a certain amount of funds to fuel the company's growth plans. Also, investor demand (or lack of demand) for the companies shares can raise or lower the initial amount of shares to be issued. As well, the overall market opportunity or industry capital requirements can generally determine how many shares will be raised; for example, an airline company will likely need to issue many more shares than a software company.

answer Jul 18 by Shubham Rajput
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