Easy access to huge capital- This is the primary reason companies offer shares through IPOs. It’s often hard to raise large amounts of money from private investors. Settling debts could be a part of the aim of a company, however, more often than not companies are looking towards increasing the working capital they have on hand in order to improve their company’s performance.
Increase in credibility – Getting listed in a stock exchange adds credibility to the company. This can be quite useful in many situations.
Helps find market valuation – An IPO helps gauge public sentiment towards the company’s future prospects and its market value, that is, how much it is valued and demanded by the public.
Reward for private investors – IPO offers an exit route for private investors who can now sell off their shares at huge profits or just see their net worth rise manifold as the shares gain in value.