Free course · Lesson 9 · 4 min
Offerings and RDOs: the one-day raise
In 4 minutes: how a one-day offering works, what an RDO is, and what a deal leaves behind on Panda Desk.
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01One block, one price
The company sells a whole block of new shares at once. A bank places them with investors at one fixed price, usually below the last trade.
02Announced, priced, closed
Most deals are announced outside market hours. The terms then land on EDGAR in a prospectus supplement.
- AnnouncedUsually after the close or before the open.
- PricedOne price for the whole block, usually below the last trade.
- 424B5The prospectus supplement with the terms.
- ClosingShares delivered, cash to the company.
03RDO: sold direct, sellable at once
In a registered direct offering (RDO), the bank sells straight to a few investors. The shares are registered, so the buyers can sell them the same day.
04Warrants often come along
Many offerings add warrants: the right to buy more shares later, at a set price. They outlive the deal.
No one exercises at $9.60 with the stock at $3.42. Above $9.60, 0.4M new shares could come.
05The offering price becomes a level
After the deal, the offering price is what every new holder paid. Traders watch it as a reference.
06Hist: has it sold stock before?
Panda Desk grades the company’s past dilution. PNDA reads High.
073 checks for any offering
Sources
- 17 CFR 230.415(a)(4): the at-the-market offering, sold at other than a fixed price, for the contrast in step 1.
- 17 CFR 230.424(b): prospectus supplements, listed on EDGAR as 424B5 and similar.
- Form S-3, General Instruction I.B.6: the one-third cap on shelf sales in 12 months when the public float is under $75M.
Panda Desk shows these rows for any small cap, next to your montage. tspanda.com
Not financial advice. PNDA is fictional, and nothing here is a recommendation to buy or sell.