The concurrent offerings puzzle


This chapter aims to explain the use and valuation impact of an interesting and innovative transaction structure: in concurrent offerings, firms issue seasoned equity and convertible securities in combination. Concurrent offerings have neither theoretically nor empirically been examined before. However, a comparable structure exists when firms go public: in unit initial public offerings (IPOs), firms sell bundles of stocks and warrants. Chemmanur/ Fulghieri (1997) present a signaling-model for the use of unit IPOs, which receives empirical support from investigations by How/Howe (2001), Lee/Lee/Taylor (2003) and l3youn/Moore (2003).192 This model can be adapted for concurrent offerings and is used as a basis for the discussion.


Abnormal Return Financial Distress Free Cash Flow Common Stock Cumulative Abnormal Return 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Deutscher Universitäts-Verlag|GWV Fachverlage GmbH, Wiesbaden 2006

Personalised recommendations