ANALYSIS: At-the-Market Offerings Rise in the Pandemic

At-the-market (ATM) offerings surged in the second quarter of 2020, driven by a need for cheap capital and encouraged by continued investor buying during the pandemic downturn. The value of ATM deals far outpaced any other quarter since Q2 2009.

Already through Aug. 10, ATM offerings have raised nearly $33 billion on 251 deals valued at least $1 million, exceeding 2019’s entire haul by $5.5 billion on 15 fewer deals.

ATM offerings permit companies to raise capital inexpensively and manage volatility risk: An issuer determines the timing and number of shares sold to the public. By way of comparison ...