What is an FPO (Follow-on public offering)?
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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.
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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.
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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?