Module III· ECM — Follow-on, ABB, Rights IssueBasic
Question
What is a follow-on offering, and how does it differ from an IPO?
Answer
A follow-on is an equity offering by an already listed company or selling shareholder. Unlike an IPO, the company already has a public trading price, disclosure history, and shareholder base. Follow-ons can be primary, secondary, marketed, accelerated, or rights-based. Execution is usually faster and more market-price anchored than an IPO.