What is an FPO or Follow on Public Offering?

Follow on public offering (FPO) are the public issue of shares for all the companies that are already listed on stock exchanges. FPO of Follow-on Public Offering is a stock issue of the additional shares which are made by the company which has already gone through issuing IPO.

These FPOs are the main and primary method for the companies to raise extra equity capital in the markets through the issue of stock. The companies can also use an FPO for issuing a sale offer to the investors, which is developed through an offer document.