Miner freeport-mcmoran last week took the unusual step of launching a US$1bn "at-the-market" equity offering to bulk up its balance sheet and limit dilution as it battles a painful squeeze from this year's slump in commodity prices. A stock sale had been the subject of market speculation since the miner's July 23 second-quarter earnings call, during which Freeport chief executive officer Richard Adkerson admitted it might be necessary. Though ATMs have been common in the past and remain so among sectors such as REITs and utilities, they are a rare sight in the modern ECM landscape where companies prefer to raise capital as swiftly as possible.
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