Issuance and Funding

Issuance and funding pages explain how companies raise capital in practice. This section now separates the issuer-facing transaction layer from capital-structure accounting, credit facilities, and M&A execution.

Start with Public Offerings and IPO Process for IPOs, primary markets, offering dates, prospectus-stage documents, pricing, and public distributions. Use Underwriting and Distribution for bookrunners, bought deals, firm commitments, best-efforts offerings, and syndicate responsibilities.

Rights, Subscriptions, and Share Allocation covers rights issues, subscription prices, allotment, open offers, and nil-paid shares. Private and Growth Financing covers private placements, PIPEs, crowdfunding, down rounds, Series B financing, and internal funding.

Specialized project, export-credit, loan-syndication, employee-option, and share-capital terms have been moved or merged into the sections where readers expect to find the canonical treatment.

In this section

• Private and Growth Financing
  Private placement, PIPE, equity crowdfunding, down round, Series B, evergreen funding, and capital-raising terms.
  • Growth Capital And Internal Financing
    Corporate finance terms for growth capital and internal financing.
    • Capital Injection: Infusion of Funds
      An in-depth exploration of capital injection, its purpose, types, examples, and implications in financial health.
    • Capital Raising: Strategies for Business Expansion
      Exploring the Strategies Companies Use to Obtain Funds for Business Expansion, Including Issuing New Shares
    • Down Round: Overview, Implications, and Strategic Alternatives
      A comprehensive analysis of down rounds in private companies, exploring their implications, strategic alternatives, and best practices for shareholders and management.
    • Equity Crowdfunding: Raising Capital by Selling Small Ownership Stakes
      Learn what equity crowdfunding is, how it works, and why it differs from both donations and traditional private financing.
    • Evergreen Funding: Understanding Continuous Capital Infusion
      Comprehensive guide to evergreen funding, including definitions, types, benefits, examples, and relevance in modern finance.
    • Internal Financing: Funds Produced by the Normal Operations of a Firm
      An in-depth look at internal financing, its types, advantages, limitations, examples, historical context, and comparisons with external financing.
    • Series B Financing: Definition, Examples, and Key Funding Sources
      An in-depth exploration of Series B financing, covering its definition, examples, and the primary sources of funding for businesses during this crucial growth stage.
  • Private Placement And PIPE Financing
    Corporate finance terms for private placement and pipe financing.
    • Form D
      SEC notice filing used to report certain exempt securities offerings, especially under Regulation D, without full registration.
    • Private Placement Memorandum (PPM): Detailed Investment Information
      A comprehensive document used in private securities offerings, detailing the investment to potential investors.
    • Private Placement: Sale of Securities to Select Investors
      The sale of securities to a select group of investors rather than the general public, primarily used to raise capital without a public offering.
    • Understanding Private Investment in Public Equity (PIPE): Direct Investment Below Market Price
      A comprehensive guide to Private Investment in Public Equity (PIPE), how institutional or accredited investors buy stock directly from public companies below market value, and its implications.
• Public Offerings and IPO Process
  IPO, primary-market, offer-for-sale, pricing, prospectus, and public securities distribution terms.
  • IPO Process, Prospectus, and Roadshows
    Corporate-finance terms for IPO preparation, book building, prospectus-stage documents, roadshows, and first-offering mechanics.
    • Book Building, Roadshows, and Pricing
      Book building, IPO roadshow, underpricing, and venture-backed IPO terms.
      • Book Building: A Comprehensive Guide to IPO Pricing
        Book Building is a dynamic process employed by underwriters to ascertain the best price for an Initial Public Offering (IPO). This detailed guide covers the mechanisms, types, special considerations, examples, historical context, and practical applications of Book Building.
      • Roadshow for IPO: Strategies for a Successful Initial Public Offering
        An in-depth exploration of roadshows and their pivotal role in ensuring the success of an Initial Public Offering (IPO), including strategies, examples, and key considerations.
      • Underpricing: A Financial Strategy for Market Demand
        An in-depth look at the financial phenomenon of underpricing, its mechanisms, implications, and role in the financial markets.
      • Venture Capital-Backed IPO: Definition, Process, and Case Study
        An in-depth exploration of venture capital-backed initial public offerings (IPOs), detailing the definition, process, considerations, and illustrative examples in the business world.
    • IPO Process and Public Offerings
      IPO, public offering, offering date, and application form terms used in equity issuance.
      • Application Form: The Gateway to Company Shares
        An application form, issued by a newly floated company with its prospectus, serves as a tool through which members of the public apply for shares in the company.
      • IPO: Initial Public Offering
        An Initial Public Offering (IPO) is the process by which a private company offers its shares to the public for the first time, transforming it into a publicly-traded company. This article provides a comprehensive understanding of IPOs including historical context, types, key events, and their importance in the financial world.
      • Offering Date: Introduction to Public Securities Distribution
        An in-depth guide to the offering date, including its definition, importance, and implications in the world of finance.
      • Public Offering
        Capital-raising transaction in which securities are sold to the public, often through an IPO or follow-on registered offering.
    • Prospectus and Offering Documents
      Prospectus, preliminary prospectus, and offering circular terms used in public offerings.
      • Offering Circular
        Offering document used in certain securities sales, often in narrower or exempt contexts where disclosure is still required but the framework differs from a standard prospectus.
      • Preliminary Prospectus: Initial Investment Document by Underwriters
        The Preliminary Prospectus, also known as the red herring, is the first document released by an underwriter of a new issue to prospective investors, detailing financial aspects of the issue subject to change before the final prospectus.
      • Prospectus
        Offering document that gives investors required information about securities being sold, including issuer details, risks, and use of proceeds.
  • Junior Capital Pools and Public Shells
    Corporate-finance terms for capital pool companies, junior capital pools, and shell-company routes to public capital.
    • Capital Pool Company: Definition, Process, and Examples
      A Capital Pool Company (CPC) is a shell company formed to identify and complete a qualifying transaction, aiding emerging businesses in accessing capital and the public markets. This entry delves into the concept, process, history, and real-world applications of CPCs.
    • Junior Capital Pool (JCP): A Unique Canadian Financial Instrument for Startups
      Learn about the Junior Capital Pool (JCP), a Canadian initiative that enables startup companies to raise capital by selling shares before establishing their primary line of business.
  • Offering Types and Distributions
    Corporate-finance terms for equity offerings, follow-on offerings, primary and secondary distributions, and offer-for-sale structures.
    • Offering Types And Issues
      Corporate finance terms for offering types and issues.
      • All-or-None (AON) Offering: Key Stipulation for Securities Sales
        A comprehensive guide to understanding All-or-None (AON) Offering, its mechanisms, criteria, and implications in securities sales.
      • Equity Offering: The Issuance of New Shares to Investors
        A Comprehensive Guide to Equity Offerings, Including Types, Examples, and Their Economic Implications
      • Follow-on Offering: An Issuance of Shares to Finance Company Activities
        A comprehensive look into Follow-on Offerings, including historical context, types, key events, and detailed explanations. Learn about their importance, applicability, and associated considerations.
      • Offer for Sale Placing: Direct Selling of Shares to the Public
        Offer for Sale Placing is a method where shares are sold directly to the public, typically through brokers, enabling companies to raise capital efficiently.
      • Offer for Sale: An Invitation to Purchase Company Stock
        A comprehensive overview of the Offer for Sale method, including historical context, types, key events, detailed explanations, and related terms.
      • Seasoned Issue: Established Quality Securities
        Seasoned issues are securities issued by companies recognized for their established quality and enjoy high liquidity in the secondary market.
      • Securities Issue: Definition, Purposes, and Types of Offerings
        An in-depth exploration of the process of offering securities to raise funds, including the definition, purposes, types of offerings, and key considerations.
    • Primary And Secondary Distributions
      Corporate finance terms for primary and secondary distributions.
      • Primary Distribution: Sale of a New Issue of Stocks or Bonds
        An in-depth explanation of the primary distribution in finance, encompassing the sale of a new issue of stocks or bonds, distinguishing it from secondary distribution.
      • Secondary Distribution: Public Sale of Previously Issued Securities
        An in-depth look at Secondary Distribution, a public sale of previously issued securities held by large investors, and its distinctions from Primary Distribution.
      • Secondary Offering: Distribution of Existing Shares
        A Secondary Offering refers to the sale of shares that have already been issued to the public and are now being sold by current shareholders.
  • Pricing, Allocation, and Market Mechanics
    Corporate-finance terms for issue prices, greenshoe options, oversubscription, primary markets, and offering cost mechanics.
    • Equity Capital Market (ECM): Where Companies Raise Capital by Selling Ownership
      Learn what the equity capital market is, how ECM transactions work, and why companies use stock issuance instead of borrowing in debt markets.
    • Issue Costs: Comprehensive Overview of Issuance Expenses
      An in-depth analysis of issue costs, covering both direct expenses of issuing securities and third-party fees.
    • Issue Price: Understanding the Offering Price of Shares
      An in-depth look at the issue price of shares, including its historical context, types, key events, importance, examples, and related terms.
    • Over-Subscription: When Demand Exceeds Supply in Share Offerings
      An in-depth look at over-subscription in the financial markets, including its implications, examples, and related terms.
    • Primary Market: Introduction and Overview
      The Primary Market is the financial market where new securities are issued and sold to investors directly by the issuer. Learn more about its types, historical context, key events, importance, and comparisons with the secondary market.
    • Understanding Greenshoe Option: A Key Provision in IPO Underwriting
      A comprehensive overview of the Greenshoe option, its purpose, mechanism, and impact on initial public offerings (IPOs) and financial markets.
• Rights, Subscriptions, and Share Allocation
  Rights issue, subscription price, allotment, nil-paid share, open offer, and shareholder allocation terms.
  • Rights Issues And Open Offers
    Corporate finance terms for rights issues and open offers.
    • Allotment: A Comprehensive Overview
      An in-depth examination of the method of distributing previously unissued shares in a limited company, known as allotment. The article covers historical context, key events, types, detailed explanations, importance, and practical applications.
    • Nil Paid Shares: Shares Issued Without Payment
      Nil Paid Shares are shares issued without payment, typically resulting from a rights issue. They offer existing shareholders the opportunity to purchase additional shares at a predetermined price.
    • Open Offer: A Share Issue Offered to Existing Shareholders Without Tradable Rights
      Learn what an open offer is, how it differs from a rights issue, and why it can dilute holders who do not participate.
    • Oversubscription Privilege: A Shareholder's Right to Purchase Additional Shares
      Detailed explanation of oversubscription privilege, where shareholders are allowed to purchase additional unexercised shares during a rights or warrants issuance.
    • Rights Issue: A Method of Raising Capital by Listed Companies
      A comprehensive guide to understanding Rights Issues, a method by which listed companies raise new capital by offering new shares to existing shareholders, typically at a discount. Explore the historical context, key events, mathematical formulas, examples, and more.
    • Stock Rights: Understanding the Basics of Subscription Rights or Warrants
      Comprehensive explanation of stock rights, also known as subscription rights or warrants, covering their types, uses, and examples in the context of stock markets and investments.
    • Unsubscribed Shares: Meaning, Mechanisms, and Implications
      Exploring the concept of unsubscribed shares in an initial public offering (IPO), including its significance, mechanisms, and market implications.
  • Subscriptions And Pricing
    Corporate finance terms for subscriptions and pricing.
    • Initial Subscription Price: Understanding the Cost of Pre-IPO Shares
      A comprehensive overview of the Initial Subscription Price, covering its historical context, key events, formulas, and relevance in investments and stock markets.
    • Subscriber: An Individual or Entity That Applies for Shares During an Issue
      Comprehensive coverage of the term 'Subscriber' with historical context, key events, and detailed explanations related to finance, investment, and stock markets.
    • Subscription Price: Rights Offering and Subscription Warrants
      The Subscription Price is the price at which existing shareholders of a corporation are entitled to purchase common shares during a rights offering, or the price at which subscription warrants can be exercised.
• Specialized, Project, and Export Finance
  Specialized corporate funding terms for co-funding, project-specific finance, export finance, and nonstandard capital sources.
  • Co-Funding: Collaborative Funding for a Single Project
    Co-Funding involves collaborative funding from multiple sources for a single project, aiming to pool resources and share risks for achieving common objectives.
• Underwriting and Distribution
  Underwriter, bookrunner, syndicate, bought-deal, best-efforts, firm-commitment, and securities distribution terms.
  • Distribution Absorption And Announcements
    Corporate finance terms for distribution absorption and announcements.
    • Assimilation: Absorption of New Stock Issue
      Detailed explanation of the process where the investing public absorbs a new issue of stock once sold by the issue's underwriters.
    • Tombstone: Financial Press Advertisement for Bank Facilities
      An advertisement in the financial press giving brief details of the amount and maturity of a recently completed bank facility. The names of the lead managers are prominently displayed, as well as the co-managers and the managers. It is customary for the borrower to pay although they receive little benefit from the advertisement.
  • Investment Banking Roles And Syndicates
    Corporate finance terms for investment banking roles and syndicates.
    • Bookrunner and Syndication Roles
      Bookrunner and syndicator terms used in securities offering coordination.
      • Bookrunner: Lead Underwriter in IPOs
        An in-depth look at the role of a bookrunner, particularly in the context of Initial Public Offerings (IPOs).
      • Syndicator: A Business Role in Selling Investment Shares or Units
        A comprehensive look into the role of a syndicator in the business world, including definitions, examples, and historical context.
    • Investment Bank and Bankers
      Investment bank, investment banker, investment banking, and investment bank versus retail bank terms.
      • Investment Bank vs. Retail Bank: Definitions, Differences, and Functions
        A comprehensive overview of the distinctions between investment banks and retail banks, including their definitions, functions, and key differences.
      • Investment Bank: Functions, History, and Impact
        An exploration of the role of investment banks in financial markets, their historical development, key events, and their functions in mergers and acquisitions and capital financing.
      • Investment Banker: Roles, Skills, and Real-World Examples
        A comprehensive guide to the roles and responsibilities of investment bankers, the skills required to excel in this field, and real-world examples of their work in raising capital, mergers, acquisitions, and business sales.
      • Investment Banking: Financial Services Beyond Deposits and Loans
        Investment banking involves finance arrangement for corporations, mergers and acquisitions, market trading, and asset management, distinct from traditional banking activities.
    • Underwriting Roles and Syndicates
      Underwriter, underwriting group, and underwriting syndicate terms.
      • Underwriter: The Risk Examiner and Financial Backer
        An in-depth look into the role of an Underwriter in various fields such as insurance, finance, and investment. This article covers historical context, types, key responsibilities, mathematical models, and more.
      • Underwriting Group: The Backbone of Securities Issuance
        A comprehensive exploration of underwriting groups in finance, including historical context, types, key events, detailed explanations, and much more.
      • Underwriting Syndicate: Collective Underwriting and Distribution of Securities
        A comprehensive guide to understanding underwriting syndicates, their historical context, types, key events, models, importance, and more.
  • Underwriting Commitments And Offering Methods
    Corporate finance terms for underwriting commitments and offering methods.
    • Bought Deals, Placements, and Accounts
      Bought deal, placed deal, placing, and eastern account terms used in underwriting methods.
      • Bought Deal: A Capital-Raising Method
        A comprehensive look at the bought deal, a method of raising capital by inviting market makers or banks to bid for new shares, becoming increasingly popular in various markets.
      • Eastern Account: Underwriter Shared Responsibility
        In finance, an Eastern Account is an underwriting agreement wherein all participating underwriters share collective responsibility for the total issuance.
      • Placed Deal: Understanding Securities Issuance
        A comprehensive overview of a placed deal in the financial sector, its context, types, key events, detailed explanations, importance, applicability, examples, related terms, FAQs, and more.
      • Placing: A Strategic Approach to Share Sales
        The sale of shares by a company to a selected group of individuals or institutions, often used for raising additional capital.
    • Underwriting Commitments and Backstops
      Firm commitment, best efforts, standby underwriting, back-stop, and sweetener terms.
      • Back Stop: Definition, Mechanisms in Offerings, and Practical Examples
        Comprehensive overview of back stops in securities offerings, explaining their definition, mechanisms of operation, and practical examples.
      • Best-Efforts Offering: Underwriters Sell as Many Shares as They Can Without Guaranteeing Sale of All Shares
        A detailed explanation of best-efforts offering, where underwriters sell as many shares as they can without guaranteeing the sale of all the shares.
      • Firm Commitment: Comprehensive Guide
        Firm Commitment in Securities Underwriting: Detailed Explanation, Examples, and Key Considerations
      • Standby Underwriting: Financial Guarantee and Share Subscription
        Standby underwriting is a financial guarantee where underwriters commit to purchase any remaining shares not subscribed by shareholders during a new issue.
      • Sweetener: Additional Feature in Securities Offering
        A 'Sweetener' refers to an added feature in a securities offering designed to make the securities more attractive to purchasers.