What Is The Full Form Of FPO In Banking?

FPO full form in banking is the Follow-On Public Offer. A firm listed on a stock exchange may issue shares to investors through a follow-on public offer (FPO)—an issue of extra shares by a firm after an IPO is known as a follow-on offering. Secondary offerings are another name for follow-on offerings.

Public businesses may also benefit from an FPO by utilizing an offer document. FPOs are follow-up issues submitted to an exchange following the establishment of a corporation. The corporation issuing the stock gets the proceeds from the sale. For a follow-on public offer, businesses must submit paperwork to the U.S. Securities and Exchange Commission (SEC), much like an initial public offering (IPO).

What Else Should You Know About FPO?

FPOs are typically announced by businesses to raise equity or pay down debt. FPOs come in two primary varieties: dilutive, which involves adding new shares, and non-dilutive, which involves selling current private shares to the public. A FPO known as an at-the-market (ATM) offering allows a business to generate money via the sale of secondary public shares on a particular day, typically based on the going rate in the market.