Book Building


DEFINITION of 'Book Building'

The process by which an underwriter attempts to determine at what price to offer an IPO based on demand from institutional investors.

BREAKING DOWN 'Book Building'

An underwriter "builds a book" by accepting orders from fund managers indicating the number of shares they desire and the price they are willing to pay.

  1. Book Runner

    The main underwriter or lead manager in the issuance of new equity, ...
  2. Direct Public Offering - DPO

    When a company raises capital by marketing its shares directly ...
  3. Institutional Investor

    A non-bank person or organization that trades securities in large ...
  4. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  5. Underwriting

    1. The process by which investment bankers raise investment capital ...
  6. Greenshoe Option

    A provision contained in an underwriting agreement that gives ...
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  4. Why would a company decide to utilize H-shares over A-shares in its IPO?

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