Follow-On Offering


Follow-On Offering

An issue of shares of stock that comes after a company has already issued an initial public offering (IPO). A follow-on offering can be diluted, meaning that the new shares will lower a company's earnings per share (EPS), or undiluted, if the additional shares are preferred. A company looking to offer additional shares, registers the offering with regulators which includes a prospectus of the investment.

Unlike an IPO, which includes a price range that the company is looking to sell shares at, the price of a follow-on offering is market-driven. Because the company is already publicly traded, it has been consistently valued by investors for at least a year before the follow-on offering is floated. Thus, any investment bank working on the offering will often focus on marketing efforts, rather than valuation.


Investment dictionary. . 2012.

Look at other dictionaries:

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  • offering —   Mōhai (for various kinds, see Haw. Eng. entry and entries that follow it);    ♦ church offering, lūlū, ho okupu, mahina hou, hānai kahu.   Also: hai, haina, hai ai, kaumaha, kaumaha ai, hāuna, hauhāuna, hua mua, ulu ālana; ālana, ālana aloha,… …   English-Hawaiian dictionary

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  • Song Offering — Song Offerings is a volume of lyrics by Bengali poet Rabindranath Thakur ( bn. রবীন্দ্রনাধ ঠাকুর), rendered into English by the poet himself, for which he was awarded the Nobel prize for literature in 1913. [ [http://nobelprize.org/nobel… …   Wikipedia


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