What is a Follow-on Public Offer (FPO)?

An FPO is when a publicly listed company issues more shares to raise capital.

Companies use FPOs to fund projects, expand operations, or pay off debt.

There are two types of FPOs: Dilutive and Non-Dilutive.

Dilutive FPOs issue new shares, increasing the total number of shares.

Non-Dilutive FPOs involve existing shareholders selling their shares.

Investors bid for shares at a price range set by the company.

FPOs can offer shares at a discount, creating investment opportunities.

Market risks and share dilution are important factors to consider.

Research thoroughly before investing in an FPO for long-term gains!