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follow-on offering

   Also found in: Wikipedia 0.06 sec.
Follow-On Offering
An offering of additional shares after a company has had an initial public offering.

Notes:
This sometimes means the company is strapped for cash. So they need to issue more shares to pay bills or finance a new project.


follow-on offering
A stock issue that follows an initial public stock offering from a firm. The follow-on offering can consist of primary and/or secondary shares. Companies will sometimes authorize additional shares that are issued at a higher price following a successful initial public offering. Also called add-on financing, piggyback.

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plans to sell 2 million shares in a follow-on offering, with existing stockholders selling another 2 million shares.
fell 25 percent Wednesday, a day after the company released quarterly earnings and filed for a follow-on offering of 7 million shares, of which existing shareholders plan to sell 6 million shares.
Senior Housing Properties Trust (NYSE: SNH) today announced that it has priced a public follow-on offering of 6,000,000 common shares of beneficial interest at a price of $26.
 
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