Core Viewpoint - The article discusses the various costs associated with an Initial Public Offering (IPO), emphasizing the importance of understanding these expenses for companies considering going public [1][3]. Group 1: IPO Requirements - Companies must meet specific criteria to go public, including being a joint-stock company with clear shareholder equity and a minimum total capital of 30 million RMB for domestic main board listings [1]. - The public offering must account for at least 25% of the company's total shares [1]. Group 2: Types of Costs Incurred - **Preparation Costs**: These include expenses related to the IPO preparation team, management training for governance and internal controls, and additional management costs [3]. - **Intermediary Fees**: Essential intermediaries for the IPO process include brokers, accounting firms, asset appraisal agencies, law firms, and consulting firms [3]. - **Risk Costs**: The primary risk is the potential failure of the IPO application, which can lead to significant sunk costs in terms of taxes, preparation, and intermediary fees [3]. - **Personnel Compensation**: Companies must consider the compensation of senior management, including fixed salaries and incentive policies aligned with corporate strategy, which can lead to increased human resource costs [4].