- 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 where it contacts investors and obtains commitments to purchase a number of shares at a specified price. Having established the demand for the shares over a two week period or so, the issuing manager sets the fixed price for the issue in line with the demand levels that have been established. Bookbuilding is a common method of implementing very large offers where the level of the issue price is difficult to determine in advance and where it is difficult to obtain underwriting (See underwriter) for the issue. Dresdner Kleinwort Wasserstein financial glossary
* * *An exercise by an investment bank, which is lead-managing a new issue to ascertain the likely levels of demand for a security at different prices. It is designed to prevent an issue being undersub-scribed because of a large discrepancy between the issue price and the price at which the security starts trading on the secondary market.
Financial and business terms. 2012.
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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
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book building — /ˈbʊk bɪldɪŋ/ (say book bilding) noun Commerce a process for raising capital for a company in which securities are offered to investors within a price range, the investors making an offer within that range and the final price being announced… … Australian English 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 — Fin the research done among potential institutional investors to determine the optimum offering price for a new issue of stock … The ultimate business dictionary
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book build — /ˈbʊk bɪld/ (say book bild) noun Commerce an instance of book building … Australian English dictionary
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