Ch. 6: Security Offerings 255
Ta b l e 4
(Continued)Year PP straight debt PP common stock Conv. debt ADR
All Regular Reg-144a All Regular Reg-144a
1993 81. 97 41. 58 40. 39 3. 28 1. 86 1. 42 9. 41 7. 26
1994 56. 82 29. 67 27. 15 2. 62 0. 88 1. 75 4. 42 8. 63
1995 50. 67 23. 10 27. 57 2. 20 1. 80 0. 39 6. 31 5. 18
1996 65. 01 19. 10 45. 91 4. 99 4. 95 0. 04 6. 69 10. 48
1997 134. 73 18. 36 116. 37 5. 55 5. 55 0. 00 8. 97 9. 85
1998 189. 95 30. 07 159. 88 5. 89 5. 46 0. 43 14. 22 8. 09
2000 170. 50 11. 46 159. 04 9. 70 9. 48 0. 22 15. 58 7. 92
2001 277. 67 15. 16 262. 51 13. 74 10. 94 2. 79 18. 54 4. 20
2002 135. 79 10. 88 124. 91 7. 52 6. 73 0. 78 7. 74 4. 85
2003 206. 00 15. 54 190. 46 7. 12 6. 54 0. 58 9. 67 5. 46
All 2 , 181. 79 841. 98 1 , 339. 81 98. 36 84. 66 13. 70 183. 60 92. 08
“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.- ADRs have a relatively larger average size of $203 million, compared to SEO average
proceeds of $86 million.
Figure 1andFigure 2show the distribution of total issue proceeds across three cate-
gories of issuers: industrial firms, banks and financial institutions, and public utilities.^13
Industrial firms are by far the dominant issuers of SEOs throughout the entire 24-year
period (Figure 1). Banks and financial institutions are a distant second, with utilities are
a very distant third. Both industrial firms and banks/financial institutions have substan-
tially greater total issue proceeds in the second half of the sample period.
On the debt side, banks and other financial institutions greatly dominate the amount
raised from public offerings of straight debt (part (a) ofFigure 2). Here industrial firms
and utilities are a distant second and third. For private placements of debt, however,
industrial issuers dominate, with banks and financial institutions a close second. As with
equity issues, the proceeds from both public and private debt issues are substantially
greater in the second half of the sample period.
2.3.2. Time from IPO to follow-on offerings
The need for new capital is undoubtedly a key motivation to go public for many private
companies. The immediate need for capital is covered by the proceeds from the IPO—
but, equally important, a public company subsequently has better access to the capital
markets. This section reviews evidence on how rapidly new public companies in fact do
come back to the market with a follow-on offering.
(^13) Notice the different scales across the vertical axis of the three figures.