Difference between an IPO and an Offer for Sale (OFS)?

IPO(Initial Public Offerings)

An IPO is the process through which a private company offers its shares to the public for the first time. It involves issuing new shares to investors in exchange for capital, thereby allowing the company to raise funds for various purposes such as expansion, debt repayment, or working capital. The process by which a private or unlisted company puts up its stock or ownership to the general public in exchange for funds is called IPO (Initial Public Offerings). This happens when a company decides to raise funds through the sale of shares and securities for the first time.

OFS  (Offer for Sale).

A simple method wherein promoters in public companies sell shares through the exchange platform is called the OFS (Offer for Sale). Therefore, the company promoters or owners can liquidate their shares to the public in exchange for funds. Unlike an IPO, the Offer For Sale (OFS) does not intend to raise fresh capital. Under this method, existing shareholders get a chance to dilute their stakes. An OFS ends up in a transfer of ownership from one shareholder to another and does not increase the company's share capital