Unit Offering Definition
There are diverse ways through which companies trade in the security market, one of them is a unit offering. Unit offering describes a case in which securities are offered or sold as a group. When a public or private offers more than one securities as a set or group, this is unit offering.
This form of offering entails an integration of a number of stocks or securities when offering them to potential investors. This can be the combination of debt and equity securities of the company. Also, securities whose interests are composed of more than one right, such as the sale of LP and LLC interests, it can be offered as unit offering.
References for Unit Offering
Academic Research on Unit Offering
Unit initial public offerings: A form of staged financing, Schultz, P. (1993). Journal of Financial Economics, 34(2), 199-229.
The underpricing of ‘unit‘initial public offerings, Jain, B. A. (1994). The Quarterly Review of Economics and Finance, 34(3), 309-325.
Empirical analysis of the economic demand for auditing in the initial public offerings market, Willenborg, M. (1999). Journal of Accounting Research, 37(1), 225-238.
Unit initial public offerings: Staged equity or signaling mechanism?, Lee, M., Lee, P., & Taylor, S. (2003). Accounting & Finance, 43(1), 63-85.
Venture capitalists and the decision to go public, Lerner, J. (1994). Journal of financial Economics, 35(3), 293-316.
The long-term performance of Hong Kong share-only and unit initial public offerings (IPOs), Mazouz, K., Saadouni, B., & Yin, S. (2008). Journal of Multinational Financial Management, 18(3), 209-228.
The opening, short, medium and long term performance of Canadian unit trust initial public offerings (IPOs), Boabang, F. (2005). Journal of Business Finance & Accounting, 32(7‐8), 1519-1536.
Ownership and operating performance of companies that go public, Mikkelson, W. H., Partch, M. M., & Shah, K. (1997). Journal of financial economics, 44(3), 281-307.
The pricing of French unit seasoned equity offerings, Chollet, P., & Ginglinger, E. (2001). European Financial Management, 7(1), 23-38.
Stock Performance following Seasoned Stock‐Warrant Unit Offerings, Byoun, S. (2004). The Journal of Business, 77(1), 75-100.
The initial listing decisions of firms that go public, Corwin, S. A., & Harris, J. H. (2001). Financial Management, 35-55.