A FPO, or Follow-on Public Offering, is the issuance of shares to investors by a company listed on a stock exchange. This type of offering allows companies to raise additional capital by selling new shares and can provide liquidity to existing shareholders. FPOs can be used for a variety of purposes, such as financing acquisitions or expanding into new markets.How does an FPO work?Typically, Follow-on Public Offering (FPO) will involve the underwriter syndicate buying up all the newly issued shares from the company and then reselling them to institutional and retail investors. The price at which these shares are sold will be based on demand from buyers and prevailing market conditions. In order for an FPO to be successful, it's important that there is interest in purchasing the new stock from both institutional and retail investors.
