A seasoned offering (seasoned equity offering/ SEO) that involves the sale of a company’s securities by a third party, usually known as the principal, to investors through public offering. The principal collects the proceeds of sale and  out of these proceeds pays the underwriting fees (underwriter’s discount). A principal (e.g., a venture capitalist) buys and holds the securities issued by the issuing company and offers them for sale to the general public. Therefore, the sale proceeds go to the principal, rather than the issuer.

In the case this offering is done simultaneously with a primary seasoned offering, this results in the so-called a combined seasoned offering or a hybrid offering.