What is meant by IPO Book Building?
Book Building is a process used during an IPO wherein bids are collected from investors at various prices that are above or equal to the floor price. The final issue price is determined after the bid closure date.
Difference between a Book Building Issue and a Fixed Price Issue:
| Book Building Issue | Fixed Price Issue |
|---|---|
| Shares offered at a price above or equal to the set floor price. | Shares offered at a fixed price. |
| Demand known everyday as the book is built. | Demand is known at the close of the issue. |
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