30
August
2022

Book building /

Bookbuilding

Business Term of the Day

Definition

Book building is a process through which demand for and the price of a newly issued security are determined.

Example sentence

Based on the results of the underwriter’s book building, USRC expects to raise about USD 500 million from its IPO.

Comment

Book building is used by underwriters in preparing an initial public offering (IPO). The price is determined on the basis of non-binding offers from select institutional investors who declare how many securities they would like to purchase and at what price. Other alternatives used to determine the price of new securities include the fixed price method or a combination of the fixed price method and book building.

Definice

Bookbuilding je proces, kterým se stanoví poptávka a cena nově vydaného cenného papíru.

Příklad použití ve větě

Na základě výsledků bookbuildingu upisovatele společnost USRC očekává, že svou primární emisí získá přibližně 500 milionů dolarů.

Poznámka

Bookbuilding provádějí upisovatelé v rámci přípravy primární emise akcií. Cena je stanovena na základě nezávazných nabídek vybraných institucionálních investorů, kteří oznámí, kolik cenných papírů by chtěli koupit a za jakou cenu. Mezi další alternativy používané pro stanovení ceny nových cenných papírů patří metoda fixní ceny nebo kombinace metody fixní ceny a bookbuildingu.

Business Term of the Day

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Business Term of the Day

English Editorial Services’ mission is to assist international businesses and organizations of all sizes to communicate clearly, correctly, and persuasively with their business partners and target audiences.

Simply subscribe to receive our Business Term of the Day at no charge to your inbox each business day, with explanation in English and Czech.

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