Public Offering

A public offering is a capital-raising transaction in which securities are sold to the public rather than only to a narrow private group of investors.

It matters because public offerings are one of the main ways companies raise large amounts of capital, broaden ownership, and enter or return to public markets.

Common Types of Public Offering

Public offerings commonly include:

• an initial public offering
• a follow-on or secondary registered offering
• other registered sales of debt or equity securities

What Public Offerings Usually Require

A public offering often involves:

• a registration statement
• a prospectus
• underwriters or placement support
• pricing, allocation, and regulatory disclosure work

Related Terms

• Prospectus: The offering document investors read during a public issue.
• Form S-1: A common SEC registration form for public offerings.
• Capital Structure: Public offerings can change the financing mix and ownership structure of the firm.