An FPO in shares means Follow-on Public Offer. It is when a company that is already listed on the stock market issues more shares to the public to raise additional money.

Simple meaning

  • IPO = first time a company sells shares to the public.
  • FPO = company sells shares again after it is already listed.

Why companies do it

  • To raise money for expansion.
  • To repay debt.
  • To fund new projects or meet working-capital needs.

Types of FPO

  • Dilutive FPO : new shares are issued, so total shares increase and existing ownership can get diluted.
  • Non-dilutive FPO : existing shareholders, such as promoters, sell their shares, so the company itself does not receive fresh capital.

In one line

If a listed company says it is coming with an FPO, it means it is making another public share offer after its IPO.

Want me to also explain the difference between IPO, FPO, and rights issue in a tiny table?