Follow on public offering (FPO) is public issue of shares for already listed company. An FPO is a stock issue of additional shares made by a company that is already publicly listed and has already gone through theIPO process.
FPOs are popular methods for companies to raise additional equity capital in the capital markets through a stock issue. Public companies can also take advantage of an FPO issuing an offer for sale to investors, which is made through an offer document. FPOs should not be confused with IPOs, as IPOs are the initial prblic offering of equity to the public while FPOs are supplemantary issues made after a company has been established on an exchange
Often people get confuse between an IPO and FPO they interchangebly use both terms albeit both are public issue but are different in many respects. An IPO means an intial public offer, which is brought by a company come first time in market for listing they have to bring IPO for it and FPO mean Follow on Public offer which is brought by the company which is already listed in the market.