Basics of Securities Market - Types of Public issue and pricing

Basics of Securities Market containing types of Public issue and pricing of public issue

1. Types of public issue and pricing Nidhi Kumar Malathy

2. Types of Public Issue
of Shares Main Types:
◦ Initial Public Offering (IPO)
◦ Follow-on Public Offering (FPO)
Purpose: To raise funds for various
business needs.

3. Initial Public Offering The process throug which a private company offers shares to the public for the first time.
Types of IPO: Fresh Issue and Offer for Sale

4. Fresh Issue in IPO Definition: New shares are issued
to the public.
Purpose: To raise capital for
company expansion, debt
repayment, etc.
Example: Facebook’s IPO in 2012.

5. Offer for Sale in IPO Definition: Existing shareholders
sell their shares to the public.
Purpose: Allows existing investors
to exit or reduce their holdings
Example: Uber’s IPO in 2019.

6. Follow-on Public
Offering (FPO) Definition: Issuance of additional
shares by a company that is already
publicly listed. Purpose: To raise more capital
after the initial IPO,
Example: Tesla’s FPO in 2020.