A new issue of securities (equity securities) by a company that has previously issued/ floated securities to the public. This involves selling more shares (stock) after completion of, or subsequent to, the primary offering/ distribution or initial public offering (IPO) stage. This results in a higher number of shares outstanding. It differs from the so-called secondary offering in that a seasoned offering is initiated and carried out by the issuing company, while secondary offering usually takes place in the secondary market and between other market participants (i.e., without involvement of the issuing company).

The process of seasoned offering starts after an IPO, though it is still a public issue of shares by a publicly listed company, to the general public. The issue of additional shares to investors at large is usually carried out for the purpose of diversifying the issuer’s equity base. Like in an initial public offering, the issuer releases a prospectus.

In terms of the impact on existing stockholders, seasoned offering may be dilutive (dilutive offering) or non-dilutive (non-dilutive offering). In a dilutive offering, the rights of existing shareholders dilute with issuance of new shares (rights relating to dividends, voting power, etc).

Generally, seasoned offering is divided into primary seasoned offering and secondary seasoned offering.

Seasoned offering is also known as a follow-on offering, FPO or subsequent distribution.