Why Did Dell Go Public in 1988?

Michael Dell took Dell public in 1988 because the company needed the capital. Dell was only four years old and growing at like 80% per year. At the same time, the business was expanding into new countries and into new product lines.

A huge amount of revenue was coming in, but all the revenue is not profit. Dell was not a software company, so the sales could not finance the growth alone. The capital was for hiring more people, opening new offices, opening new factories, and building IT systems. Being a public company also helped Dell become more of a peer with customers, because customers could look and see a real legitimate company.

The public listing was helpful at the time. Dell absolutely needed the capital to finance the growth of the business.