Follow On Public Offer
A Follow-On Public Offer (FPO) enables a publicly traded company to issue additional shares to the public, raising more capital post its Initial Public Offering (IPO). Unlike an IPO, which marks a company’s debut, an FPO requires prior public listing. FPOs often price shares at a discount to the current market price, reflecting the company’s established track record, making them attractive to investors. This strategy helps firms fund expansion or reduce debt, leveraging their existing market presence to tap into public investment efficiently.
Related Terms
Book Value
For a company, the book value refers to its Net Asset Value (NAV), which is...
Irredeemable Debentures
Irredeemable debentures are a type of long-term debt instrument issued by a company. Unlike redeemable...
Capture Ratio
The capture ratio helps investors evaluate how well an asset or portfolio performs during both...
Equity
Equity refers to ownership in a company, typically in the form of stocks or shares....
Cash Reserve Ratio
Cash Reserve Ratio (CRR) is the percentage of a bank's total deposits that it must...
Equity Shares
Equity shares refer to the ownership units of a company, issued through an Initial Public...
