http://littleskylark.com/blog/ingvar-kamprad-ikea-will-never-ipo/
Most of people once thought that the dream of entrepreneurs was to bring their companies into NASDAQ for IPO, so the unwillingness that showed by Ikea to gather investment through stock market surprised me a lot. I have found the idea by Ingvar Kamprad is unique and interesting. I searched on the Internet, and I have found that some Japanese companies belonging to Tech industry and medium-sized companies in the USA also abandoned the chance for IPO. The most representative company is Ikea. In my opinion, IPO actually utilizes the separation of equity and management. Company will operate smoothly despite the frequent change of owner under the advantages of separation. The reason for gathering cash through public is that sometimes a project is so costly that needs the concentration of investment from citizens. In return for this, people get profits through the investment. However, Ikea’s decision is not irrational. If a company issue shares, the shareholders will claim for quicker and more benefits, which will put much pressure to the managers, forcing them to change the long term objective to short term pursue. Another point is that if Ikea becomes a listed company, about 30% of profits will be issued to every investor. If Ikea does not go for IPO, The amount of cash can become cash for emergency when cash flow becomes intense. Whether to or not to go for IPO has its advantages and disadvantages. It depends on whether the main operation and objective of the company will change after the decision. If a company finds it help create profits for a short term and brand value in a long term after a decision, then follow the decision. If not, abandon it.