ATMs: helping US companies grow for over 20 years
ATMs have been used in the United States by listed companies of all sizes since the 1990s. They have become a popular funding solution across all sectors in the US, with companies such as Tesla, Citigroup, Bank of America, Ford, American Airlines and BlackRock using ATMs as a source of funding.
In 2021 alone, over US$140 billion was made available through ATMs to more than 600 US organisations. Prior to this, Tesla used two ATMs to raise a total of US$10 billion in late 2020.1
1ATM data from PlacementTracker
Strengthen your balance sheet with additional capital
With an ATM in your capital management toolkit, you’ll have an additional source of capital available to help grow your business.
ATMs are ideal for funding:
- Working capital
- Research and development
- Strategic projects
- Smaller acquisitions and buyouts
- A balance sheet buffer to mitigate risk
Broaden your options and reduce your cost of capital
Adding ATMs to your capital management toolkit expands your capital raising options. By reducing reliance on any one source of capital, you have the opportunity to reduce your cost of capital across all sources. You can be more selective in choosing from different funding options at any given time, reducing your overall cost of capital.
Take advantage of market opportunities
An ATM is unique in its ability to take advantage of favourable short-term market conditions. For example, ATMs are typically used when share prices are elevated, during periods of high liquidity or when market sentiment is strong. Traditional methods for accessing capital are often too slow to take advantage of these opportunities, whereas an ATM can be utilised as and when they arise.
Why use an ATM?
Reduced cost of capital
Adding an ATM solution to your capital management toolkit broadens your capital raising options. With more funding options to choose from, you can reduce your reliance on any one source of capital and potentially lower your cost of capital across all sources.
Negligible impact on share price
In our experience in implementing over 60 ATM solutions for ASX-listed companies, establishing and using an ATM has a negligible impact on a company’s share price. This mirrors the experience of companies using ATMs in the United States.
Simple and transparent fee structure
The costs associated with an ATM are typically lower and more transparent when compared to traditional capital raising methods.
A low-touch option for raising capital
ATMs are simple to establish and easy to utilise, requiring less executive time and effort. ATMs do not require roadshows, broker presentations, offer documents or other time-consuming activities.
Ongoing access to capital on your terms
ATMs give companies unapparelled control over the key terms of their capital raise, including timing, minimum issue price and the maximum number of shares issued. This enables you to maximise funds raised, minimise dilution and reduce your cost of capital.
Capital with confidence
As the preeminent provider of ATM solutions in Australia, Acuity Capital makes the process of establishing and utilising an ATM simple. We can support you in guiding key stakeholders including executives, board members and shareholders through all stages of the ATM process.