If the Hong Kong exchange did not deny Alibaba the initial public offering, A problem with the agency relationship may have resulted from the stakeholder interests not being handled as thoroughly as they should have been.
<h3>What is meant by an initial public offering?</h3>
An initial public offering is when a private firm offers its first equity to the general public (IPO). A company's ownership is essentially changing from private ownership to public ownership through an IPO. Because of this, the IPO procedure is occasionally referred to as "going public."
Whether a company is brand-new or has been operating for years, it might choose to go public through an IPO. Company insiders may use an IPO to diversify their holdings or generate liquidity by selling all or a portion of their private shares as part of the public offering. Companies typically issue an IPO to raise capital to pay off debts, fund growth initiatives, increase their public profile, or any of these purposes.
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