In what type of offering are all of the proceeds directed to the issuer?

In a primary offering, all of the proceeds are directed to the issuer of the securities. This type of offering occurs when a company issues new shares to the public for the first time, primarily to raise capital for business activities such as expansion, paying off debt, or investing in new projects.

In this scenario, since the funds go directly to the issuer, it underscores the primary purpose of a primary offering, which is to infuse the company with the financial resources it needs. This is distinct from other types of offerings, such as secondary offerings where existing shares are sold by shareholders without raising new capital for the company, or private placements where securities are sold directly to a select group of investors, often without the proceeds returning to the issuer for business purposes. An initial public offering falls under the umbrella of primary offerings but typically refers specifically to the first time a company offers its stocks to the public, reinforcing that all proceeds from this event similarly go to the issuer.