bookbuilding means making an initial public offering (IPO) by means of a bookbuild; the process of setting the initial price of an IPO based on preliminary bids by potential investors. Lexicurio rates it Sui generis — a strength score of 89 out of 100.
Etymology
From book + building.
noun
- Making an initial public offering (IPO) by means of a bookbuild; the process of setting the initial price of an IPO based on preliminary bids by potential investors.“Bookbuilding, the dominant offering mechanism for IPOs in the U.S. and other markets, is controversial because of the power it gives underwriters over IPO allocations.”