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.

Look at other dictionaries:

  • Follow-on offering — A follow on offering (often called secondary offering ) is an issuance of stock subsequent to the company s initial public offering. A follow on offering can be either of two types (or a mixture of both): dilutive and non dilutive. A secondary… …   Wikipedia

  • Follow-On Offering — An issue of shares of stock that comes after a company has already issued an initial public offering (IPO). A follow on offering can be diluted, meaning that the new shares will lower a company s earnings per share (EPS), or undiluted, if the… …   Investment dictionary

  • follow on from — ˌfollow ˈon from [transitive] [present tense I/you/we/they follow on from he/she/it follows on from present participle following on from past tense follow …   Useful english dictionary

  • follow on from — phrasal verb [transitive] Word forms follow on from : present tense I/you/we/they follow on from he/she/it follows on from present participle following on from past tense followed on from past participle followed on from follow on from something… …   English dictionary

  • offering —   Mōhai (for various kinds, see Haw. Eng. entry and entries that follow it);    ♦ church offering, lūlū, ho okupu, mahina hou, hānai kahu.   Also: hai, haina, hai ai, kaumaha, kaumaha ai, hāuna, hauhāuna, hua mua, ulu ālana; ālana, ālana aloha,… …   English-Hawaiian dictionary

  • Follow On Public Offer - FPO — An issuing of shares to investors by a public company that is already listed on an exchange. An FPO is essentially a stock issue of supplementary shares made by a company that is already publicly listed and has gone through the IPO process. FPOs… …   Investment dictionary

  • Secondary Market Offering — A follow on offering (often called secondary public offering just secondary offering ) is an issuance of stock subsequent to the company s initial public offering. A follow on offering can be either of two types (or a mixture of both): dilutive… …   Wikipedia

  • Direct public offering — A Direct Public Offering (DPO) is similar to an Initial Public Offering (IPO) in that stock is sold to investors, but unlike an IPO, a company uses a DPO to raise capital directly and without the assistance of an investment banking firm or broker …   Wikipedia

  • Securities offering — A securities offering (or funding round or investment round) is a discrete round of investment, by which a business or other enterprise raises money to fund operations, expansion, a capital project, an acquisition, or some other business… …   Wikipedia

  • Song Offering — Song Offerings is a volume of lyrics by Bengali poet Rabindranath Thakur ( bn. রবীন্দ্রনাধ ঠাকুর), rendered into English by the poet himself, for which he was awarded the Nobel prize for literature in 1913. [ [http://nobelprize.org/nobel… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”