What Is the Full Form of FPO in Business?

The Full Form of ‘FPO’ in Business is ‘Follow on public offer’.

Full Form of FPO

FPO stands for follow on public offer, and it is a term used in business circles to refer to the issuance of additional stocks by a company that has already gone through an initial public offering (IPO). This type of offering is often used to raise capital for a variety of purposes, such as acquisitions, expansion, or refinancing.

When a company goes through an IPO, it issues new shares of its stock to the public in order to raise money. Generally speaking, only a certain percentage of the total outstanding shares are offered during an IPO, so the company must then look for additional ways to raise capital if they want to expand their operations or finance other projects. This is where FPO comes into play.

By issuing an FPO, companies can raise additional funds without having to go through the time-consuming and expensive process of another IPO. Additionally, companies can also use FPOs to increase their visibility and attract more investors by providing them with an opportunity to purchase additional shares at attractive prices.

An FPO is different from other types of offerings because it requires the approval of existing shareholders before any new stock can be issued. Companies must first hold a board meeting and vote on whether or not they want to issue more stock. If approved, the company will then have to register their FPO with the Securities and Exchange Commission (SEC) before they can begin selling additional shares.

Once registered with the SEC, shareholders will receive information about how much they are entitled to buy in terms of new stock as well as what price they will be able to purchase it at. Generally speaking, FPOs tend to be priced lower than IPOs since they are seen as less risky investments due to the fact that existing shareholders already have some skin in the game.

In addition to raising capital for various projects, issuing an FPO can also benefit a company’s image by demonstrating confidence in their future prospects. Furthermore, issuing an FPO could potentially help attract larger investors who may be looking for higher returns than those offered through traditional stocks or bonds.

Overall, understanding what “FPO” stands for in business is important for anyone involved in investing or running a business since these types of offerings provide companies with access to additional capital while also providing investors with attractive opportunities for growth potential.

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