What is the possible advantage that private placement has over IPO?

What is the possible advantage that private placement has over IPO? 

Ans. Private placement has following advantages over IPO: 

(a) Cost: Cost of Private placement of securities is much less than IPO in terms of: 

(i) Typical expenses associated with a public offering include legal and accounting fees, filing fees, travel costs, printing costs and underwriter’s expense allowance. 

(ii) Documents required for IPO–Prospectus, Application forms and many more. 

(iii) Commission to be paid and remunerations of the persons to be hired. 

(iv) Fees and registration formalities of Stock Exchanges, SEBI, etc. 

(v) Disclosure and obligations cost after the issue to be followed.