What is Follow on public offering or FPO?

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Follow on public offer is the process where a company which is already listed on the stock exchanges issuing new shares for investors to raise extra capital from the stock markets. For going for a follow on the public offering, the company must have already gone through the IPO process and its shares are listed and are trading on the stock exchanges.

This is usually used by the publicly listed company when they are in need of cash for the business.

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