Registered Direct Offering

A registered direct offering is a sale of securities by a public company directly to one or more identified investors under an effective SEC registration statement. The investors and the company usually agree on the amount and price before the transaction closes, and a placement agent may help arrange the sale. Unlike a private placement, the offered securities are registered for the transaction, but unlike a traditional underwritten public offering, the securities are placed directly with selected purchasers. Because new shares or share-linked securities may be issued, a registered direct offering can dilute existing shareholders.