Book Building

When launching an IPO, book building is one of the methods used by companies to determine the selling price of the shares. Instead of deciding on a fixed price, through book building, the company assesses the demand and declares a price range for the bid. The investors choose a bidding price and number of shares when filing the application. The cut-off price is finalised based on the applications received, once the bidding process is completed.

Answered on 2022-09-05