IPO Book Building Process Explained
36.2 هزار بار بازدید -
7 سال پیش
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Book building is among the
Book building is among the three different mechanisms used to complete an initial public offering (IPO). It is when the investment bank collects information on how much investors want and what they are willing to pay for shares in an IPO. This helps the bank determine the issue price by building a demand curve in order to ensure that the issue is not overpriced or underpriced.
In the video, we cover:
- What is book building?
- What are the four steps to completing an IPO with the book building process?
- What are the benefits of the book building process?
- What is the fixed price mechanism and its risks?
By going and meeting with institutional investors and groups of retail investors on a roadshow, bankers are able to start with a valuation range determined internally and work towards a set price for the issue.
If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon!
For those who may be interested in finance and investing, I suggest you check out my Seeking Alpha profile where I write about the market and different investment opportunities. I conduct a full analysis on companies and countries while also commenting on relevant news stories.
http://seekingalpha.com/author/robert...
In the video, we cover:
- What is book building?
- What are the four steps to completing an IPO with the book building process?
- What are the benefits of the book building process?
- What is the fixed price mechanism and its risks?
By going and meeting with institutional investors and groups of retail investors on a roadshow, bankers are able to start with a valuation range determined internally and work towards a set price for the issue.
If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon!
For those who may be interested in finance and investing, I suggest you check out my Seeking Alpha profile where I write about the market and different investment opportunities. I conduct a full analysis on companies and countries while also commenting on relevant news stories.
http://seekingalpha.com/author/robert...
7 سال پیش
در تاریخ 1396/06/29 منتشر شده
است.
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