Hi, how could the company or the underwriter increase the price or "nudge" the institutions/banks/funds to pay more? Do they use their option to not follow through with the IPO/Follow On offer? Thanks.
No book building is part of the bought deal process. The whole point of book building is to determine what the IPO can sell for and ensure that they are not leaving any money on the table. After finding that price range, they buy the shares below that range to price in their fees and then handle the listing themselves. Of course book building can be done for best efforts as well but in today's competitive markets this is the most popular IPO process.
well , explained 👏👏🏻
Great video and very well explained. Thank You!
Hi, how could the company or the underwriter increase the price or "nudge" the institutions/banks/funds to pay more? Do they use their option to not follow through with the IPO/Follow On offer? Thanks.
Very well explained, fellow finance kid :D
Hey I've a doubt, can institutions who bid for an IPO and have to pay up at the cut off price back off at the last moment by not purchasing the shares
Very informative, thank you Sir...
Grate explanation.
Thanks for watching!
arent you sort of mixing fixed price an bookbuilding in the beginning? Is bookbuilding actually a "bought deal"?
No book building is part of the bought deal process. The whole point of book building is to determine what the IPO can sell for and ensure that they are not leaving any money on the table. After finding that price range, they buy the shares below that range to price in their fees and then handle the listing themselves. Of course book building can be done for best efforts as well but in today's competitive markets this is the most popular IPO process.