A follow-on offering is an issuance of stock shares following a company's initial public offering (IPO). There are two types of follow-on offerings: diluted and non-diluted. A diluted follow-on offering results in the company issuing new shares after the IPO, which causes the lowering of a company's earnings per share (EPS). During a non-diluted follow-on offering, shares coming into the market are already existing and the EPS remains unchanged.