✨ What the Heck is an FPO? 🤔💰
A Follow-On Public Offer (FPO) raises capital by issuing additional shares, impacting existing shareholders through potential dilution or maintaining ownership. Understanding Follow-On Public Offers (FPOs) A Follow-On Public Offer (FPO) is a method by which a publicly listed company issues additional shares to raise capital. This process occurs after the company has already gone public through an Initial Public Offering (IPO). FPOs serve various strategic purposes, including debt reduction, business expansion, or funding new projects. Why Do Companies Conduct FPOs? Companies opt for an FPO for several reasons: Raising Additional Capital: FPOs allow companies to gather more funds without going through the lengthy IPO process again. This capital can be used for expansion, acquisitions, or operational costs. Debt Management: Companies may use the funds raised from an FPO to pay down existing debts, improving their financial health. Market Conditions: If a company’s stock is performing ...