What is an FPO (Follow-on public offering)?
A Follow-on Public Offering (FPO) is a type of public offering where a publicly traded company raises additional capital by issuing new shares to the public.
An FPO is carried out by a company that has already gone public, as opposed to an Initial Public Offering (IPO), which involves a firm going public for the first time. Under an FPO, the company offers fresh shares to the general public, with all net proceeds going to the company.
The shares can be purchased at a set price or through book building, where a bidding process is used to determine the price. The application process is similar to that of IPOs.
General
- What does record date and ex-date mean?
- What are takeovers?
- How does Bigul square off positions?
- Will eligibility for corporate action benefits be affected if stocks are pledged with Bigul?
- What is book closure date?
- Are shareholders eligible for corporate action benefits if the shares are sold on the ex-date/record date?
- What is a fractional share?
- What does delisting mean?
- What should be done if someone missed applying for a delisting?
- What is an FPO (Follow-on public offering)?
- What is the impact of mergers and spin offs on shares?
- Why were the shares not eligible for corporate action benefits even though they were purchased before the ex-date?