Market Trends 2019/20: At-the-Market Equity Offerings

This article was originally published in Lexis Practice Advisor. Reprinted with permission. Any opinions in this article are not those of Winston & Strawn or its clients. The opinions in this article are the authors’ opinions only.

This practice note discusses the market trends for at-the-market offerings (ATM offerings or ATM equity programs) in 2019 as well as deal structure and process, disclosure trends, and outlook for 2020. There has been an uptick in the number of ATM offerings that can be attributed to the continued volatility of market conditions, with factors such as the continued trade war between the United States and China. History has shown that more companies conduct ATM offerings in such uncertain times. For instance, at the height of the recession in 2009, the total value of ATM offerings reached approximately $18 billion (with 13 ATM offerings announced), whereas in 2008 the total value of ATM offerings was $323 million (with only two ATM offerings announced). In addition to providing some comfort in times of volatility, ATM offerings have remained an attractive capital raising option due to their low-cost nature as compared to other types of equity offerings.

Read more about ATM offerings 2019 market trends and the 2020 outlook here.