Follow-on Public Offer (FPO)

Should You Subscribe For an FPO?

FPO is generally considered an advantage compared to IPOS because investors get an idea about the company's management, business practices, and potential growth.

The company listed on the stock exchange is not new, and investors will get the historical reference for its earnings report, the performance of the stock market, and much data to bank on.

FPO tend to have less risk than IPO because the price fixed for an IPO is lower than the market price to attract shareholders to invest more in FPO.

Several shareholders engage in the FPO to buy shares at a discounted market price and sell them in the market to gain a premium on their transaction.

A lot of research is required in FPO to know about the company and its past performance, but the degree of homework in FPO is a lot easier.

Hence it goes well for risky investors and gives them an opportunity to access shares of a company at a discounted price.