The order book can be defined as a record of orders maintained by the underwriters (the specialist or the investment bank). A book building is generally used to market initial public offerings to investors. Following the original studies led by Benveniste and Spidt (1989) and Benveniste and Wilhelm (1990), this process consists in three steps.
First, the investment bank invites selected investors to evaluate the issue. Second, after evaluation of the issue, selected investors inform the bank of their preliminary demand. third, the investment bank prices the issue and undertakes the allocations of shares to investors.
First, the investment bank invites selected investors to evaluate the issue. Second, after evaluation of the issue, selected investors inform the bank of their preliminary demand. third, the investment bank prices the issue and undertakes the allocations of shares to investors.
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| Order Book |
