Secondary Offering

Category: finance

The sale of new or closely held shares by a company that has already gone through an IPO.

A secondary offering is a "capital raise" for an already public company. Unlike the IPO, where it’s the first public sale, a secondary offering happens when the company needs more money for expansion or an early investor wants to cash out.

Common Examples

• The company announced a secondary offering to raise funds for the construction of their new global data center complex.
• Shareholders often react cautiously to a secondary offering, as it dilutes the existing ownership stake in the company.