Environmental pollution has attracted great attention as the environment deteriorates with rapid economic growth. As more and more companies begin to strive for Initial Public Offerings (IPOs), one question is that whether the process is good for the environment. Using panel data from 86 Chinese cities over the period of January 2001 to June 2011, I find that (1) air quality improves after firms IPO; (2) aggregate air quality improves more after IPO; (3) the air quality improvement in cities with IPOs firms is no better than the overall improvement throughout China; (4) expanded corporate investment after IPO produces more air pollution; (5) enhanced corporate governance after IPO helps to control air pollution; and (6) government environmentally friendly investment improves air quality and modifies corporate’s impact on air quality.