Equity Capital Markets

Secondary Offering

Definition

What is Secondary Offering?

A sale of existing securities by current holders, so the issuer generally does not receive the proceeds.

Example in practice

An early investor sells part of its stake to the public after the IPO.

Keep learning

The first public sale of a private company's shares, after which the shares may trade on an exchange.

A sale of newly issued securities in which the issuer receives the proceeds.

An additional public share sale by a company that is already listed.

An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.

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