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Why is QIB demand important in an IPO?

QIBs play a vital role in the IPO process. Their participation is often viewed as a strong vote of confidence in the company’s fundamentals, which can positively influence demand from other investor categories.

During book-building, QIB bids are especially important because they help determine the fair price of the issue based on informed, research-driven valuations. Therefore, higher the QIB demand signals strong the listing potential and long-term stability.

Why is QIB demand important in an IPO?