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A Follow-on Public Offer (FPO) is a public offering of shares by a company that is already listed on a stock exchange. Generally, in an FPO, a company issues “new shares”, which allows it to raise additional capital (after its IPO).
An FPO differs from an OFS because a fresh issue in an FPO increases the company’s share capital, while an OFS involves existing shareholders selling their shares.
| FPO | IPO |
| Offered by an already listed company | Used when a company first offers shares to the public and wants to be listed |
| Takes place after the company’s IPO/listing | Takes place before the company’s initial public listing |
| Can raise additional capital through a fresh issue | Can raise capital through a fresh issue |
| Investors receive shares in an already listed company | Investors receive shares as part of the company’s initial public offering |
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