Why would a Company become a Public Limited Company?

There are many reasons why a company would become a public limited company (PLC). Some of them include but not limited to:

• the ability to raise additional finance (usually through the stock market)
• achieving economies of scale by lowering operating costs
• greater publicity attracting customers
• the ability to make the company look more prestigious
• the opportunity to make acquisitions by offering shares to the shareholders of the target company

A lot of companies would become Public to enable quicker expansion. One advantage of this would mean an increase in income and thus more profits.