book building

book building
bookbuilding, book building
The marketing of an issue of securities which effectively precedes the determination of the offer price. The bookbuilding period commences with the publication by the company of a preliminary offering document called the pathfinder prospectus or red herring. As a guide to potential investors the pathfinder prospectus normally contains an indicative price range within which the offer price will be set. On the basis of this document, the bank controlling the issue will receive firm indications from potential investors as to their level of demand at any given price so leading to the creation of a "book" of demand graded by price and quality. At the end of this period, the price is determined by reference to demand and the underwriting agreement entered into. The following day, the final prospectus is produced and dealings commence. Orders for the shares are confirmed with closing taking place a week or so later.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • Book building — is basically the process of generating a book of investor demand for the shares during an IPO for efficient price discovery. Usually, the issuer appoints a major investment bank to act as a book runner.Book building is a common practice in… …   Wikipedia

  • Book Building — The process by which an underwriter attempts to determine at what price to offer an IPO based on demand from institutional investors. An underwriter builds a book by accepting orders from fund managers indicating the number of shares they desire… …   Investment dictionary

  • Book building — Композиция книги …   Краткий толковый словарь по полиграфии

  • book-building — A method of implementing an offer for subscription or offer for sale. It is a compromise method of issue which draws on elements of a fixed price offer and a tender. Prior to the issue of shares, the issuing house conducts a bookbuilding exercise …   Financial and business terms

  • book building — A method of implementing an offer for subscription or offer for sale. It is a compromise method of issue which draws on elements of a fixed price offer and a tender. Prior to the issue of shares, the issuing house conducts a bookbuilding exercise …   Financial and business terms

  • Book Tower — Infobox Skyscraper building name = Book Tower | built = 1916 1926 use = office location = 1265 Washington Boulevard Detroit, Michigan USA roof = 145 m (475 ft) top floor = antenna spire = floor count = 38 stories floor area = 118,571 m² architect …   Wikipedia

  • Book Runner — Das Bookbuilding Verfahren beschreibt ein Verfahren der Platzierung von Wertpapieren, bei dem interessierte Investoren innerhalb einer bestimmten Zeichnungsfrist auf den Kauf dieser in einer vorgegebenen Preisspanne bieten können und am Ende der… …   Deutsch Wikipedia

  • Building the Virginian Railway — began as a project to create an convert|80|mi|km|sing=on long short line railroad to provide access for shipping of untapped bituminous coal reserves in southern West Virginia early in the 20th century. After facing a refusal of the big railroads …   Wikipedia

  • Building Big (book) — Building Big is a book written by David Macaulay, author of the The Way Things Work books. The book details the design of about 25 famous structures, broken down into 5 categories: Bridges, Tunnels, Dams, Arches, and Skyscrapers. The buildings… …   Wikipedia

  • Building Information Modeling — (BIM) is the process of generating and managing building data during its life cycle [Lee, G., Sacks, R., and Eastman, C. M. (2006). Specifying parametric building object behavior (BOB) for a building information modeling system. Automation in… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”