IPO: - The first sale of stock by a private company to the public. IPOs are often issued by
smaller, younger companies seeking the capital to expand, but can also be done by large
privately owned companies looking to become publicly traded.
FPO: - An issuing of shares to investors by a public company that is already listed on an
exchange. An FPO is essentially a stock issue of supplementary shares made by a company
that is already publicly listed and has gone through the IPO process.
Offer For Sale (OFS)
A method of bringing a company to the stock market by selling shares in a new issue. The
company sponsor offers shares to the public by inviting subscriptions from investors.
(a). Offer for sale by fixed price - the sponsor fixes the price prior to the offer.
(b). Offer for sale by tender - investors state the price they are willing to pay.
A strike price is established by the sponsors after receiving all the bids. All investors pay the
strike price.
smaller, younger companies seeking the capital to expand, but can also be done by large
privately owned companies looking to become publicly traded.
FPO: - An issuing of shares to investors by a public company that is already listed on an
exchange. An FPO is essentially a stock issue of supplementary shares made by a company
that is already publicly listed and has gone through the IPO process.
Offer For Sale (OFS)
A method of bringing a company to the stock market by selling shares in a new issue. The
company sponsor offers shares to the public by inviting subscriptions from investors.
(a). Offer for sale by fixed price - the sponsor fixes the price prior to the offer.
(b). Offer for sale by tender - investors state the price they are willing to pay.
A strike price is established by the sponsors after receiving all the bids. All investors pay the
strike price.
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