Capital Markets (ECM / DCM)
Walk me through how an IPO offer price is actually set via bookbuilding.
Model answer
The bank publishes an initial price range (e.g., from valuation work and investor soundings). During the roadshow, institutional investors submit indications of interest (price/quantity) into the…
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More from Capital Markets (ECM / DCM)
- Why does a company go public (IPO)? Give the main pros and cons.
- Walk me through the IPO process from start to finish at a high level.
- What is bookbuilding and how does the roadshow feed into it?
- How is the final IPO offer price determined?
- Why are IPOs often deliberately underpriced?
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