Types of PO
A PO can take the form of a "public offering" that issues new shares to raise capital (bringing funds into the company), or a "secondary offering" in which a major shareholder or similar party sells shares it already holds (bringing no funds into the company). Because the purpose and the impact on existing shareholders differ, it is important to check which form is being used.
What to keep in mind
A mechanism like an off-auction distribution, which lets investors buy at a discount to the market price, can look attractive, but the seller's motivation for parting with the shares (such as a need to raise cash) and the share price movement after the distribution vary case by case. It is best to avoid making an investment decision based on the size of the discount alone.