後續股發行研究

Abstract

This paper examines the decision framework in choosing between equity selling mechanisms for a post-IPO institution – with a particular emphasis on the Seasoned Equity Offering (SEO) and the Private Investment in Public Equity (PIPE) mechanisms. The recent emergence of PIPEs have altered the corporate financial landscape and few studies have comprehensively covered the issuance decision between seasoned public offerings and the private PIPE medium, two of the most common placement methods for small and midsize offerings. Our primary finding is that small or midsize companies should turn towards PIPEs when information asymmetry is high, when market conditions are poor, when time flexibility is necessary, and when they need strategic investments from relationship investors. SEOs should be pursued when market conditions are favorable and if issuers need want to minimize under pricing and maximize fund-raising. Other key considerations such as types of issuers, types of investors, and types of structuring are also explored. Finally, the paper includes a decision tree for the issuance decision based on the theories espoused by existing literature.