How Follow-on Public Offer (FPOs) Help Companies Raise Capital for Growth
Автор: LearnCity
Загружено: 2023-03-02
Просмотров: 167
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A Follow-on Public Offer (FPO) is a type of public offering through which a company can raise additional capital by issuing new shares to the public. In an FPO, an already listed company offers new shares to the public for subscription, typically to fund expansion or investment opportunities. The new shares are offered to existing shareholders as well as new investors.
FPOs are typically carried out when a company needs additional capital to finance new projects or to pay off debts. It is a way for companies to raise funds without taking on additional debt. FPOs are regulated by government bodies and stock exchanges to ensure transparency and protect the interests of investors.
Investors who subscribe to an FPO are typically looking for long-term gains through capital appreciation and dividends. Companies that offer FPOs are often well-established and have a track record of profitability, making them attractive to investors who are looking for stable returns.
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Timestamps
0:00 -Intro
0:15 -Follow up Public offer
2:24 -Advantage and Disadvantage
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