I think you are referring to the impact on EPS when the follow-on public offer or FPO tends to increase the share capital. It is largely dependent on the price at which the FPO is done. Let me explain.
For example, if the FPO price is fixed at a deep discount to the current market price, it can be a loss for existing shareholders in two ways. Firstly, it dilutes the value of the stock and secondly, it dilutes the earnings of the company.
However, if the FPO is done at a substantial premium, which is not too practical, then the impact is not dilutive for the existing shareholders of the company issuing the FPO.
I think you are referring to the impact on EPS when the follow-on public offer or FPO tends to increase the share capital. It is largely dependent on the price at which the FPO is done. Let me explain.
For example, if the FPO price is fixed at a deep discount to the current market price, it can be a loss for existing shareholders in two ways. Firstly, it dilutes the value of the stock and secondly, it dilutes the earnings of the company.
However, if the FPO is done at a substantial premium, which is not too practical, then the impact is not dilutive for the existing shareholders of the company issuing the FPO.