A follow-on public offer (FPO) is an additional offering of shares by a company which has been listed through an initial public offering (IPO) and which is aimed at raising equity or reducing debt. It is also referred to as a secondary offering and can be dilutive or non-dilutive in nature; i.e. new shares or existing private shares may be released respectively. In the past, companies would only be able to conduct a single FPO or issue public shares at fixed prices with long waiting periods before favour was shown on the markets.

The modern implementation of FPOs sees the corporate taking a much more flexible approach to its capital raising needs as technology has made more potential options available. In particular, a company can use an at-the-market (ATM) offering to allow for the sale of secondary public shares to be made on any day, subject to the prevailing market price. This allows for greater control over the timing of the capital raising, eliminates waiting times and provides for a more efficient way to access the markets. As technology has improved, it has also become easier for companies to communicate their plans for the use of funds raised from the FPO to potential investors.

The decision by a company to conduct a FPO should not always be made lightly. It is an important step that not only raises capital but also affects the control stakeholders, management and ownership of the company. Therefore, it is important that done properly with long-term interests of the company in focus.

While a FPO offers clear advantages in terms of raising capital or reducing debt , it also holds some degree of risk. Companies must be willing to accept the fact that welcoming more public investors may come with some political, operational and legal challenges that must be addressed. Also, the public investors may demand greater transparency into the operations and finances of the business. Companies must carefully consider the pros and cons before proceeding with the offering.

In summary, a FPO is an additional offering of shares by a company which has already been listed through an IPO. The FPO offers companies a chance to raise equity or reduce debt but must also be carried out with mindful effort regarding the potential risks associated with it. The modern advancements in technologies have allowed for the FPO to become more efficient and flexible, enabling companies to better control the timing and amount of capital raising.