The company creates brand new shares. The proceeds go directly to the company’s balance sheet (e.g., to pay down debt, fund R&D, or make an acquisition). Existing shareholders get diluted.
At the head of the table sat Marcus Vane. Vane was a shark in a bespoke suit, representing Apex Global. He controlled nearly ten percent of Strand’s existing float. If he didn’t buy into the offering, the deal would die on the vine. seasoned public offering
An SPO happens when a company that is already public issues and sells additional shares to investors. Unlike an IPO, there’s no “price discovery” mystery—the market already knows the stock. The offering price is typically at a small discount to the current market price to entice buyers. The company creates brand new shares
Existing shareholders (often founders, early investors, or private equity firms) sell their stakes. The money goes to them , not the company. The share count stays the same. At the head of the table sat Marcus Vane
"Artie," the voice crackled over the intercom. "They're ready."
Enter the , also known as a Seasoned Equity Offering (SEO) or a Follow-on Public Offering (FPO) . It is the "second act" of corporate fundraising, where an already public company returns to the market to issue more shares. 1. Why Go "Seasoned"?