Equity Capital Markets
Follow-On Offering
Definition
What is Follow-On Offering?
An additional public share sale by a company that is already listed.
Example in practice
How This Looks in Practice
A listed manufacturer raises money for a new factory through a follow-on offering.
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Related Terms
Equity Capital Markets
Initial Public Offering
The first public sale of a private company's shares, after which the shares may trade on an exchange.
Equity Capital MarketsPrimary Offering
A sale of newly issued securities in which the issuer receives the proceeds.
Equity Capital MarketsSecondary Offering
A sale of existing securities by current holders, so the issuer generally does not receive the proceeds.
Corporate ActionsRights Issue
An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.