Follow On Public Offer (FPO)

A Follow-on Public Offering (FPO) is a type of equity offering in which a company sells additional shares of its stock to the public. FPO's are often used by companies to raise capital for expansion or other purposes.

FPO's are similar to Initial Public Offerings (IPO's) in that they both involve the sale of new shares of stock to the public. However, there are some key differences between FPO's and IPO's.

One key difference is that FPO's are typically made by companies that have already been publicly traded for some time. This is in contrast to IPO's, which are typically made by companies that are new to the public markets.

Another key difference is that FPO's are often made at a lower price than IPO's. This is because FPO's are typically made by companies that have already established a track record of profitability.

Finally, FPO's are often made in smaller increments than IPO's. This is because FPO's are typically made by companies that are already well-known to the investing public.

FPO's can be a good way for companies to raise capital without having to go through the lengthy and expensive process of an IPO. However, FPO's also carry some risks. For example, FPO's can be volatile, and the price of the company's stock may decline after the offering.

Companies that are considering an FPO should carefully weigh the risks and benefits before making a decision. They should also consult with their financial advisors to make sure that the FPO is the right choice for their company.