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19 Cards in this Set
- Front
- Back
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Is IPO necessary |
No |
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Means of flotation (5) |
1) Introduction 2) Issue by tender 3) Offer for sale 4) Placing 5) Public issue |
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Issue of shares to its previous shareholders |
Rights issue |
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Who are the underwriters |
Usually a syndicate of investment banks |
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Who may the sub-underwriters be? |
Institutional investors, banks and hedge funds |
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What do the underwriters provide? |
A guarantee that the issuer will receive the required capital by agreeing to purchase the shares, if not subscribed by someone else, at a specified price. Also, usually provide administration and guidance of the process. |
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Standard fee for the underwriting |
2% of of the proceeds of the issue |
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Since when is the alternative to underwriting popular |
1990s |
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What's the principal difference between the two ways in which the issue price is determined. |
Principal difference relates to the timing of the determination of the offer price relative to the underwriting and marketing of the issue. Where bookbuilding is used, the marketing of the securities effectively precedes the determination of the offer price. |
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What does the bookrunner initially do |
Pre-marketing investigatory work. |
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What does the bookrunner do on the commencement of the bookbuilding |
The company or a pathfinder issues an approved-price-range prospectus which indicates the price and the conditions |
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What does the bookrunner do after issuing of the prospectus |
Assesses the level of interest in the shares, using sophisticated IT technology |
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How does bookbuilding end |
The price is determined by reference to the level of demand |
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What is a placing? |
Marketing of securities by an investment bank which is sponsoring the issue to its clients. |
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How is marketing of securities by an investment bank which is sponsoring the issue to its clients called? |
Placing |
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What is premium listing subject to? |
The "super-equivalent rules". |
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What is subject to the "super-equivalent rules"? |
Premium listing |
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What is standard listing subject to? |
The minimum EU requirements |
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What kind of listing is subject to the minimum EU requirements |
Standard listing |
