In: Finance
What is seasoned equity offerings?
A seasoned equity offering (SEO) (also called secondary equity offering or capital increase or Follow On Offering) refers to issuance of additional securities from an already publicly traded company. The company is established, whose securities already trade in the secondary market and is coming to the market to raise more money. Thus this issuance follows a company’s Initial Public Offering (IPO) on the stock market. New shares issued by blue-chip companies are considered seasoned issues. Seasoned offerings may involve shares sold by existing shareholders, new shares or both.