Module III· ECM — Follow-on, ABB, Rights IssueIntermediate
Question
When do you use an ABB instead of a marketed offering?
Answer
Use an ABB when the issuer or seller wants speed, confidentiality, lower market exposure, and there is enough investor demand for a quick placement. Use a marketed offering when the deal is larger, story is complex, investor education is needed, or the company wants broader distribution and more time to build demand.