What is a common reason for a company to undergo an IPO?

A company typically undergoes an Initial Public Offering (IPO) primarily to raise funds for expansion and growth. This process allows the company to sell shares to the public for the first time, thereby opening up a new stream of capital that can be used for various initiatives such as developing new products, entering new markets, or enhancing operational capacity.

Funding from an IPO is generally significant, enabling companies to accelerate their growth trajectories and implement strategic plans that might have been constrained by prior funding limits. Moreover, going public can also enhance the company's profile, which might attract additional investment opportunities or business partnerships.

In contrast, other reasons listed are not aligned with the typical objectives of companies pursuing an IPO. For instance, avoiding public scrutiny and decreasing market visibility are contrary to the nature of going public, which inherently increases both. Additionally, an IPO generally increases shareholder influence rather than limiting it, as shareholders, including new investors, gain a stake in corporate decision-making.