Piggy Back Registration


DEFINITION of 'Piggy Back Registration'

When an underwriter allows existing company shares to be sold in conjunction with a new public offering. The registration of these securities is said to be "piggybacking" off the IPO (hence the term "piggy back registration"). That said, a piggy back registration is distinct and not the same as "piggybacking."

BREAKING DOWN 'Piggy Back Registration'

In order for a piggyback registration to take place, the underwriter must sign off on the idea and the arrangement must be noted in the new issue's prospectus. Under such arrangements, the prospectus will give all the details, including the names of those selling private shares. Piggy back registrations are often done as a means of consolidating all the outstanding shares and allowing joint venturers to participate in the IPO.

  1. SEC Form PREC14A

    A filing with the Securities and Exchange Commission (SEC) that ...
  2. Institutional Shares

    A class of mutual fund shares available for sale to investing ...
  3. Prospectus

    A formal legal document, which is required by and filed with ...
  4. Fully Paid Shares

    Shares issued in which no more money is required to be paid to ...
  5. Issued Shares

    The number of authorized shares that is sold to and held by the ...
  6. Underwriting

    1. The process by which investment bankers raise investment capital ...
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