What Is an FPO (Follow-on Public Offer)?
What Is FPO (Follow-On Public Offer)? Author: @nkit When a company is already listed on the stock market and decides to raise more money from public investors again, it issues something called a Follow-On Public Offer , or FPO for short. An FPO is similar to an IPO (Initial Public Offering), but instead of the company going public for the first time, it is offering additional shares after its initial listing. This guide explains FPOs in simple terms so beginners can understand what they are, why companies use them, and what investors should consider before applying. How an FPO Works When a company wants to raise additional funds after being listed, it announces an FPO. This means the company will issue new shares or offer existing shares to the public at a set price or price band. Investors can then apply for these shares during the FPO subscription period using their brokerage or bank platform. Why Companies Issue FPOs Companies may choose ...