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Glossary · PSX term

Secondary offering.

A secondary offering is a sale of additional shares by a company or large holder after the IPO.

Definition

A secondary offering can raise new capital for the company or let an existing large holder sell down a stake. It can increase free float but may also dilute existing shareholders if new shares are issued.

Worked example

The government selling part of its stake in a state-owned company through the market is a secondary offering.

Related on PSX Clarity

Term
Initial Public Offering (IPO)
Term
Free float
Term
Dilution
Term
Right shares

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