follow-on offering
USA
After completing its IPO, a company may later decide to offer additional securities, whether debt or equity, to the public. These offerings are referred to as "follow-on" offerings because they follow the IPO. There are two types of follow-on offerings:
• A primary offering, which is a public offering of securities directly by the company, usually in order to raise additional capital.
• A secondary offering, which is a public resale offering by stockholders or other securityholders of the company. In a secondary offering, the company does not receive any proceeds.
Sometimes a follow-on offerings consists of both a primary and a secondary offering, such as when a company is registering additional shares of common stock and allows certain stockholders to sell some of their shares in the same offering.
See Practice Note, Follow-On and Secondary Registered Offerings: Overview (www.practicallaw.com/5-381-0957).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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