IPO has two components -
1. New stocks issued and sold to public that will infuse capital in the company but will dilute current stockholders' ownerships since there are new members to share the pie. This money is company's and all the stockholders collectively own it. Larry cannot use this for personal purpose.
2. Current stockholders selling part or all of their current holdings to the public. This money will go to their pockets. This will further dilute their ownerships. For example, Larry will get all the money from disposal of his 1 million shares.