Direct Public Offering

A direct public offering (DPO) is a method for companies to raise capital by selling shares directly to the public without using intermediaries like investment banks. Unlike traditional initial public offerings (IPOs), where underwriters help price and sell the stock, DPOs allow companies to avoid fees and give them more control over the offering process. DPOs are generally used by smaller or private companies that already have a loyal customer base or community interested in purchasing shares. While they can be less costly, DPOs often lack the extensive marketing and investor interest generated by traditional IPOs.

Example

A small tech company sells shares directly to its customers and community members through a DPO to raise funds for expansion.