The Impact of Initial Public Offerings (IPO) On the Growth of Companies’ Market Capitalization
Abstract
Initial Public Offerings (IPOs) represent one of the most significant mechanisms through which companies gain access to capital markets and attract large-scale investment. By offering shares to the public for the first time, firms are able to obtain financial resources necessary for expansion, innovation, and strategic development. At the same time, the transition from a private to a public company can significantly influence the market valuation of a firm. The objective of this study is to analyze the impact of IPOs on the growth of companies’ market capitalization and to identify the key factors that contribute to the increase in firm value after going public. The research is based on the analysis of theoretical approaches and international corporate practice related to IPO performance. The study examines examples of major companies that experienced significant capitalization growth after public listing. The findings indicate that IPOs contribute to the expansion of financial resources, improvement of corporate transparency, and strengthening of investor confidence, which collectively support the growth of market capitalization. The results of the research highlight the important role of stock markets in corporate financing and economic development.