Why Most Companies Underestimate the True Cost of an IPO

Executive team reviewing IPO cost projections with financial advisors.

Most companies underestimate the true cost of an IPO because they focus only on visible fees like underwriting and legal, overlooking hidden costs, underpricing, and long-term public company expenses.

In this article, you’ll see why IPOs often consume far more capital than expected, where leaders typically miscalculate, and how you can build a conservative, accurate financial model. Each section tackles real questions companies ask before going public—so you’ll walk away with actionable clarity.

What direct costs does a company face in an IPO?

Direct IPO costs include underwriting fees, legal expenses, accounting services, registration, listing fees, and roadshow costs. These are the easiest to estimate but still often exceed projections. 

Discover More. 

 

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