What is a follow on public offer (FPO)

A follow on public offer is known as a FPO is a further issue of shares by a company to its investors.

This is an issue for shares when the existing shares are already listed on the stock exchanges.

The price for such an issue thus has to be linked to the traded price in the market,

This can be used by companies to raise more capital for its needs.

It can also be used by existing investors to exit their holdings.