Capital Raising Process
Capital Raising Process – An Overview This article is intended to provide readers with a deeper understanding of how the capital raising process works and happens in the industry today. For more information on capital raising and different types of commitments made by the underwriter, please see our underwriting overview . Book Building Process During the second phase of underwriting advisory services, investment bankers must estimate the expected investor demand. This includes an evaluation of current market conditions , investor appetite and experience, news flow, and benchmark offerings . Based on all these conditions, investment bankers or underwriters will draft a prospectus with a price range that they believe is reflective of expected investor demand. Then, combined with institutional investors’ commitment, the underwriter will narrow the offering to a firmer price. As investment bankers receive orders at certain prices from institutional investors, they create