In terms of advantages, the need for fi nancing growth has been viewed as one of the most critical factors of going public. e advantage of going public is to obtain fi nancing minimize the cost of capital and maximize fi rm value (Modigliani and Miller, 1963). Likewise, when going public, companies reduce the cost of fi nancing because it avoids the interference by fi nancial intermediaries. Choe et al. (1993) and Nanda (2002) sustain that companies raise public equity when they reach an extreme point at the business’ growth cycle whereby the need for external capital continues to grow.