Q&As

What is the process of bookbuilding?

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Published on LexisPSL on 15/09/2017

The following Corporate Q&A provides comprehensive and up to date legal information covering:

  • What is the process of bookbuilding?
  • What is bookbuilding?
  • What are the advantages of bookbuilding?

Written in partnership with Nothando Malaba (Associate, Hogan Lovells International LLP) and Maegen Morrison (Partner, Hogan Lovells International LLP).

What is bookbuilding?

In the context of an initial public offering, 'bookbuilding' is the standard process by which the price and size of an issue of securities is set generally before the investment banks execute the underwriting agreement. It is usually held where there are institutional investors participating in the offering.

The bookbuilding process is typically led by the global co-ordinator, acting on behalf of a syndicate of underwriters, who invites potential investors to submit binding (but revocable) bids for the securities on offer. During the marketing roadshow, potential investors will usually be provided with a pathfinder or ‘red-h

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