What does a company do during the IPO stage?

During the IPO (Initial Public Offering) stage, a company transitions from private to public by offering its shares to the general public for the first time. This involves a thorough preparation process, including hiring investment banks to underwrite the offering, conducting due diligence, and filing necessary documents with regulatory authorities, such as the SEC in the U.S. The company also creates a prospectus detailing its business model, financial performance, and risks associated with the investment. Ultimately, the IPO allows the company to raise capital for growth while providing liquidity for existing shareholders.