Price Pressure and Overnight Seasoned Equity Offerings
2018 ◽
Vol 53
(2)
◽
pp. 837-866
◽
Keyword(s):
Between 2009 and 2014, 75% of seasoned equity offerings (SEOs) were announced and issued overnight, compared to 27% between 2000 and 2008. Overnight issuers obtain a higher SEO offer price because they experience more favorable pre-offer returns. Consistent with these favorable returns being due to the avoidance of pre-issue selling pressure, non-overnight issuers experience a 2.5% pre-issue stock-price decline that reverses within 7 days. This post-issue reversal is increasing in SEO offer size and bigger following large pre-issue price declines. In contrast, returns following overnight offerings are less positive and unrelated to SEO offer size or pre-issue returns.
2017 ◽
2005 ◽
Vol 5
(1-2)
◽
pp. 75-111
◽
Keyword(s):
2005 ◽
Vol 08
(01)
◽
pp. 31-51
◽
2017 ◽
2019 ◽
Vol 21
(5)
◽
pp. 2535-2545
Keyword(s):