Book building
Book building is the process by which underwriters or issuers determine the price at which an initial public offering (IPO) or other placement will be made. This price discovery process involves collecting and recording investor demand before finalizing the issue price.
AIX offers two types of book building services to meet the varying needs of market participants:
Classic Book Building
This approach is suitable for non-standard, complex, or tailored transactions, and includes the following features:
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Requires completion of a full Book Building Agreement.
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Allows flexible configuration of book building terms and structure.
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May involve multiple books run in parallel:
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Price Discovery Book – investors place bids within a price range.
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At Strike Book – investors indicate the amount they wish to invest at a strike price set by the issuer or underwriter.
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May include allocation of securities to investor accounts at AIX CSD.
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Duration and mechanics are determined based on issuer/underwriter preferences.
- The Agreement must be submitted two weeks before the book building.
Simplified Book Building
Designed for standard bonds placements, this streamlined option improves efficiency and reduces administrative workload:
- Only a Book Building Application is required (no full agreement).
- Suitable for placements with standard terms and structures.
- Offers faster setup and execution while maintaining core book building functionalities.
- The Application must be submitted two days before the book building.
Please note: The Classic approach remains applicable for any book building with specific requirements or bespoke structures.