Secondary Offering
A secondary offering is a public sale of existing (or newly registered) shares after the IPO — dilution or a holder exit, depending on who sells.
Definition
Follow-ons can be primary (new shares, cash to the firm) or secondary (existing holders sell). Registered directs and ATM programs are quieter cousins. The tape usually fades the announcement on dilution and adverse selection.
Why it matters
Supply is a flow. A large secondary from a PE sponsor is a clock; a primary raise into distress is a going-concern print.
Case
A post-IPO lockup expiry paired with a marketed secondary. The stock gaps 8% on size, then mean-reverts if the seller is a known financial, not a CEO.
How to read it
Who is selling, how much of float, and is there a primary component. Size versus ADV tells you the impact, not the press release.