Ch. 6: Security Offerings 253
Ta b l e 3
(Continued)Year PP straight debt PP common stock Conv. debt ADR
All Regular Reg-144a All Regular Reg-144a
1994 906 639 267 93 75 18 33 49
1995 623 413 210 64 60 4 30 34
1996 623 294 329 50 49 1 44 69
1997 865 290 575 58 58 0 43 56
1998 1006 309 697 49 40 9 23 19
1999 812 252 560 66 64 2 27 23
2000 543 126 417 89 87 2 31 19
2001 833 142 691 265 258 7 43 13
2002 705 103 602 256 249 7 11 15
2003 999 117 882 292 288 4 17 19
All 17948 11965 5983 2145 2062 83 1545 453
The SDC source contains a total of 91,455 issues over the 24-year sample period. Of these, 8,173 are excluded
as the issuing firm could not be identified on the University of Chicago CRSP file using the SDC name and
Cusip number and the CRSP Permno. Moreover, another 2,659 offerings are excluded as they do not belong
to any of the issue categories shown below. “PP” denotes private placement; “Unit” offerings are equity
offerings with warrants; “Shelf” offerings are pre-registered under SEC Rule 415; “ADR” denotes American
depository receipt; and “Reg-144a” denotes private placement to a qualifying investor under SEC regulation
144a.- Convertible debt issues represent only three percent of all debt issues (1,545 of
56,891) and has remained relatively stable in annual terms since 1990. - ADRs represent 4% of all SEOs and have remained relatively stable in annual terms
since 1991.
Table 4provides the annual distribution of offering proceeds (in $billion) from the
offerings inTable 3. Over the 24-year period, the proceeds from all offerings are in ex-
cess of $12 trillion. Dividing through by the total number of issues reveals the following
interesting regularities concerning average issue sizes: - The average IPO is 21% smaller than the average SEO: $68 vs. $86 million.
- The typical public debt issue is about three times the average SEO: $230 vs. $86
million. - Private placement issues are roughly half the size of public issues: $46 vs. $86 million
for SEOs, and $122 vs. $230 million for public debt issues. - For SEOs, shelf offerings are on average twice as large as traditional registered offer-
ings: $149 vs. $75 million. - For public offerings of straight debt, shelf issues are on average slightly smaller than
traditional registered offerings, $211 vs. $250 million. - Convertible debt issues are of the same average size as the privately placed straight
debt issues: $119 vs. $122 million.