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Simple English definitions for legal terms

follow-on offering

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A quick definition of follow-on offering:

Follow-on offering: A follow-on offering is when a company sells more shares to the public after they have already gone public through an initial public offering (IPO). This is usually done because the company needs more money. Sometimes, existing shareholders may also sell their shares to the public. This can make the shares worth less because there are more of them. But if the company is just selling shares it already has, then it doesn't make the shares worth less.

A more thorough explanation:

A follow-on offering is a type of public offering that occurs after a company has already gone public through an initial public offering (IPO). This type of offering is also known as a "follow-on public offer" or "FPO." Companies usually conduct follow-on offerings when they need additional capital beyond what they raised in their IPO.

Follow-on offerings can be conducted as shelf offerings, which means that the company has already registered the securities with the Securities and Exchange Commission (SEC) and can sell them to the public at any time. Alternatively, follow-on offerings can occur as secondary offerings if existing shareholders want to sell their shares to the public.

There are two types of follow-on offerings: dilutive and non-dilutive. A dilutive offering increases the number of shares outstanding, which means that each share is entitled to a lower relative portion of the company's earnings. On the other hand, a non-dilutive offering does not increase the number of shares outstanding.

One example of a follow-on offering is when a company goes public through an IPO and then conducts a follow-on offering to raise additional capital for expansion or to pay off debt. For instance, in 2019, Uber went public through an IPO and then conducted a follow-on offering to raise $8.1 billion in capital.

Another example of a follow-on offering is when existing shareholders want to sell their shares to the public. For example, in 2020, Tesla conducted a secondary offering where existing shareholders sold their shares to the public, raising $2.3 billion.

These examples illustrate how follow-on offerings can help companies raise additional capital beyond what they raised in their IPO. They also show how follow-on offerings can be conducted as either dilutive or non-dilutive offerings.

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got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
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