Undertaking a secondary offer—fundamentals
Published by a LexisNexis Corporate expert
Practice notesUndertaking a secondary offer—fundamentals
Published by a LexisNexis Corporate expert
Practice notes
This Practice Note considers the key issues arising when an existing listed or AIM UK company proposes to undertake a secondary offer such as a placing, rights issue or open offer to raise further capital.
What is a secondary offer?
The term secondary offer (also referred to as a secondary issue) refers an equity fundraising undertaken by a company once it has already been admitted to a stock market such as the Main Market of the London Stock Exchange or AIM. In a secondary offer a company issues new shares to investors raising funds for the company. The term secondary offer can also include a sale of shares by existing shareholders in the company to investors which raises funds for the existing shareholders (or an offer of new shares by the company combined with an offer of shares by existing shareholders). This Practice Note focuses on fundraisings by the company where the company alone is issuing new shares in a secondary offer.
Why do companies undertake secondary offers?
Companies undertake secondary offers to raise additional funds which could be
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