What is a retail public offer?
Shares offered to the public by the appointment of a receiving bank
What is an institutional offer?
Shares offered through an investment bank and broker directly to investors
Retail public offers - 2 ways
1) Offer for subscription - new shares sold to public
2) Offer for sale - existing shares sold to public
Institutional offers - 2 ways
1) Placing - new/existing shares offered to specified institutional investors (placees)
2) Intermediaries offer - hybrid of retail and institutional - shares offered to intermediaries (fund managers/stockbrokers) who allocate their own clients
What is bookbuilding?
- A way of marketing an issue of shares
- Investment bank/bookrunner runs a book of interest in shares from interested investors
- Bookrunners gauge interest in issue
- Roadshow presentations to potential institutional investors
What is underwriting?
Lead underwriter (investment bank) will underwrite the issue, i.e., purchase any shares not taken up by investors
What is a global offer?
An offer of shares in more than 1 country
