How many new shares could a public company issue after IPO?

Could I find out this by reading the quarterly financial statement?

  • What are you hoping to find out from this information? In basically every case, the number will be arbitrarily high, and will have no bearing on value of current shares. Dec 3, 2020 at 15:27

1 Answer 1


The company will have the number of shares that it is legally permitted to issue in its articles of incorporation (in the US). If the number of outstanding shares (e.g. already listed on exchange) is less than the amount authorized, the company can issue up to the authorized amount.

The company requires approval from its board of directors to increase the number of authorized shares.

The number of authorized shares is disclosed in the companys' 10-Q.

  • You mentioned that the board of directors of a company needs to approve additional share issuing. Does SEC also need to approve this in the US? Dec 3, 2020 at 4:51
  • Depending on their disclosure requirements the company may need to file another S-1 or S-3 with the SEC. securitieslawyer101.com/2014/secondary-offerings-going-public
    – xirt
    Dec 3, 2020 at 5:40
  • With regard to preferred shares, a company may get around a restriction in the number of preferred shares that it may issue by issuing depositary shares. A recent example is CFR-B which issued 150,000 B shares at $1,000 each and then sold 6,000,000 depositary shares to the public at $25 each, each representing a 1/40th ownership interest in a share of the Series B issue. Dec 3, 2020 at 10:55
  • @xirt I read the article on securitieslaywer101.com. But it is still not clear whether the company needs SEC approval if it wants to issue new shares via primary offering. Do you think SEC needs to approval it? Dec 3, 2020 at 17:08
  • @BobBaerker Thanks. Where could I learn more about the CFR-B example you mentioned? Dec 3, 2020 at 17:11

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