Term · Capital Measures & Financing
At-the-Market Offering / ATM
In briefIn an at-the-market offering, a company issues new shares gradually over the exchange at the prevailing daily price. For US small caps this enables flexible financing but can cause continuous dilution.
Definition
An at-the-market offering is a capital raise in which new shares are sold gradually over the market at the respective current price.
How it is calculated
Formula. Issue proceeds = shares sold × average selling price less costs.
Why it matters for small caps
ATM programmes enable flexible financing for US small caps but can cause continuous dilution.
Common misreadings
- ATM programmes are often overlooked because dilution does not become visible in a single large capital measure.
In the process
Frequently asked
What is an at-the-market offering (ATM)?
It is a capital raise in which shares are issued continuously at the market price. Unlike a one-off placement, the sale is spread over time.
How does an ATM programme work?
The issue proceeds result from the shares sold times the average selling price less costs. The company can flexibly control timing and quantity.
Why is dilution in an ATM easily overlooked?
It is spread across many small sales instead of one large capital measure. As a result, the creeping rise in the share count is barely noticeable.
Related terms
Sources
Primary
EUR-Lex – Market Abuse Regulation, Verordnung (EU) Nr. 596/2014
https://eur-lex.europa.eu/eli/reg/2014/596/oj
https://eur-lex.europa.eu/eli/reg/2014/596/oj
Methodology
Bundesministerium der Justiz – Wertpapierhandelsgesetz (WpHG)
https://www.gesetze-im-internet.de/wphg/
https://www.gesetze-im-internet.de/wphg/
Education only, not investment advice. Ranges and thresholds are didactic orientation values, not an official standard.