What is an FPO - Why Do Companies Opt for an FPO
What is an FPO? A Comprehensive Guide In the world of finance, businesses often need to raise capital to fund growth, reduce debt, or pursue strategic initiatives. One of the methods companies use to achieve this is through an FPO or Follow-on Public Offering . If you’re familiar with an Initial Public Offering (IPO), an FPO can be seen as a subsequent step for already-listed companies. In this article, we’ll delve into the meaning of an FPO, how it works, its types, and the implications for both companies and investors. What is an FPO? An FPO, or Follow-on Public Offering , is a process by which a publicly traded company issues additional shares to the public after its initial public offering (IPO). The primary aim of an FPO is to raise additional capital by offering new shares or selling existing shares held by promoters or early investors. Key Characteristics of an FPO: Post-IPO Mechanism: It occurs after the company has already gone public through ...