FOLLOW-ON OFFERINGS

FOLLOW-ON OFFERINGS


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. 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.