FULL FORM OF FPO

                 FPO stand for Follow on Public Offer. A follow on public offering is the issuance of shares to investors by a company already listed on stock exchange. A follow on public offering is an additional shares made by a company after an initial public offering. FPO usually announce by companies to raise equity or reduce debt.
               Public companies can take advantage of an FPO through an offer document. It should not be misunderstand wit IPO,the initial public offering of equity to the public. FPOs are additional issues made after a company is listed on an exchange.

TYPES OF FPO

          There are two main type of follow on public offers. The first is dilutive and second is non dilutive. The first is dilutive to investors,as the company's board of directors accepts the proposal to increase the share float level or the number of share available. In dilutive follow on public offering seek to raise money to reduce debt or expand the business. Hence increase in the numbers of shares outstanding.
        The other type of follow on public offer is non dilutive. It is useful when directors or substantial shareholders sell -off privately held shares. In a non-dilutive offer,all share sold are already in existence. It is normally referred to a secondary market offering.

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