ATM Benefits

Risk management

Manage debt ratios & access cash during stress

Manage through the cycle

Top up working capital, keep dividend steady


Comfort to ratings agencies, creditors & banks

Reduce costS

Fees and discounts can be significantly lower


Companies control all aspects of ATMs

unlock opportunities

Raise when prices or volumes are attractive

Raise above VWAP

Raise capital above the Value Weighted Average Price


Supplement capital raises, working capital or the DRP

ATMs provide better results because the company is in control

ATMs provide better results because the company is in control

ATMs are the missing piece of the puzzle for ASX companies

ATMs are the missing piece of the puzzle for ASX companies

ATMs combined with traditional methods leads to better results

ATMs combined with traditional methods leads to better results


ATMs allow the company to control if, when, at what minimum price and how much capital is raised.


ATMs provide flexibility that complements more traditional capital management strategies.


No investment bankers, no brokers, no road shows and no disclosure documents. Just cheaper capital. 

ATM Key Features

ATMs are established for a particular term (e.g. 2 or 3 years) with a notional limit available over the term (e.g. $100 million). The company may "turn on" the ATM at any time during the term, though is under no obligation to do so.

Each time the company turns on the ATM it specifies the key parameters, including: 

  1. Minimum or floor price - though the actual issue price may end up higher
  2. Maximum number of shares issued - ensuring minimal dilution 
  3. Period over which the ATM is utilised - ensuring capital is raised at the optimal time

Importantly, the ASX company retains total control including whether or not to use the ATM. 

Think of each ATM use as a "reverse buy back."

Important: ATMs are NOT equity lines and there is no overhang at any time


Simplified ATM example

Let's assume: ASX listed Company ABC Ltd has established an ATM with Acuity in January with a notional limit of $250 million over three years.

ABC Ltd announces the ATM and six months later ABC decides to utilise (i.e. "turn on") the ATM.


1. abc requests exercise of atm

ABC requests Acuity to exercise the ATM and specifies to Acuity:

  • a minimum exercise price of $2.00 per ABC share
  • a maximum 60m ABC shares to be issued, and
  • an exercise valuation period of one month, commencing on 31 July

ABC has not specified a limit on how much capital can be raised by Acuity, though it may have done so. 

ABC issues the ATM exercise request to Acuity on 30 July. The market is not informed of the exercise request from ABC to Acuity. 

2. Valuation period: 31 July to 30 August

This is the period ABC has specified in its request to Acuity. This period will be used to value the actual issue price of ABC stock (i.e. exercise price of the ATM). 

The ABC price over the valuation period is subject to the minimum floor price of $2.00 (though there is no maximum, so the final issue price may be higher).

The maximum number of 60m ABC shares to be issued is also used in the calculation over the valuation period. 

Assume, ABC trades on good volumes between a price of $1.90 and $2.20 with a VWAP of $2.05 for the valuation period.  


Acuity Graph.jpg

3. Acuity exercises & Provides capital

Acuity exercises the ATM, based on the market information relating to the VWAP and its hedging of ABC, following completion of the exercise period (i.e. 30 August).

For example:

  • Acuity subscribes for 50m ABC shares at a price of $2.10 each
  • Acuity pays $110m to ABC, and
  • ABC issues a 3B and 708A Cleansing Statement for 50m ABC shares issued to Acuity.

Summary of ATM utilisation

ABC Ltd raised $110m by issuing 50m shares at an issue price of $2.10 to Acuity, including all fees.

The ATM issue price of $2.10 is above the floor price of $2.00 and also above the ABC VWAP of $2.05 over the valuation period. This is because ABC traded between $1.90 to $2.20 and the market prices below the $2.00 floor price set by ABC Ltd during the valuation period are not included in the calculation of the ATM issue price.

The 50m ABC shares issued by ABC Ltd is less than the maximum requested of 60m because the market liquidity of ABC was not sufficient over the requested valuation period. 

So in this simplified example, ABC Ltd has "beaten the market" using the ATM to raise capital above the floor price and the market VWAP (even factoring in all fees). 

No overhang, ever

The ATM is not an equity line. And there is never an overhang: not before, during or after the ATM is exercised or indeed at any time. 

Can be used multiple times

ABC may "turn on" its ATM once, multiple times or not at all during the term. Each time ABC utilises its ATM it may specify different ATM valuation parameters (i.e. each time the ATM is turned on, ABC specifies a new floor price, the maximum issue of shares and a different valuation period, including for just one day, a few days, a week, a month or even longer). ABC is always in control. 

This is a simplified example and of course individual capital raising results will vary. For smaller companies we call the ATM a Controlled Placement Agreement or CPA, though the mechanism is substantially the same. The terms of any At the Market (ATM) or Controlled Placement Agreement (CPA) or similar agreement will be exclusively subject to the detailed provisions contained in those legal documents.