why would a company choose to float?

And how is the float price determined?

Float--to come to market, issue shares on the stock exchange.

Reasons,

Establish a value for your company (share price)

Ability to sell founders shares (or some)

Increase/ enhance image to suppliers/customers.

Ability to raise cheap money via shareholders (equity funds)

Ability to make acquisitions using shares.

Issue price is determined by peer valuation, investor demand. The valuation is usually a compromise between the owner's valuation (high) and the corporate broker's valuation (low). A stock market valuation will be higher than a private company valuation.

Floating on the stock market gives access to a lot of cheap money.

The float price is usually on how much profit is being made, and hence what the dividend payments will be, at the moment a return of % to 8% depending on the company, so if you buy ￡1,000 of shares you would expect to be paid at least ￡50 or 5% but more likely ￡80 or 8% or more.

why would a company choose to float?

And how is the float price determined?