At-The-Market (ATM) offerings are used by publicly traded companies in order to raise capital over time. In an ATM offering publicly listed companies can raise capital in the secondary market using Dolphin Corporate Investments.

ATM facilities are not a new concept. They have been utilised in North American markets by some of the world’s leading companies to raise funds cost effectively and efficiently.

Traditional placements generally incur a 6% commission fee and often also require the issue of stock options to the broker. In addition to this, most placements are issued at a deep discount to the prevailing market price.

Rights Issues and Share Purchase Plans (SPP’s) are an excellent method for raising funds. However, companies are exposed to market risk as these issues are required to be open for a certain length of time. During the open offer period, the market price of the shares may fall below the entitlement SPP offer price, negatively impacting the incentive for investor uptake. In addition to this, most rights issues and SPPs are issued at a significant discount to the prevailing market price.

It is important to understand the benefits and limitations of an At-The-Market offering as this unique financing tool may unlock value for shareholders in the future.