What is an ‘Accelerated Bookbuild’
An accelerated bookbuild is a form of offering in the equity capital markets. It involves offering shares in a short time period, with little to no marketing. The bookbuild of the offering is done vey quickly in one or two days. Underwriters may sometimes guarantee a minimum price and proceeds to the firm.
Explaining ‘Accelerated Bookbuild’
An accelerated bookbuild is often used when a company is in immediate need of financing and debt financing is out of the question. This can be the case when a firm is looking to make an offer to acquire another firm.
For example, BetandWin.com used an accelerated bookbuild to raise between 200 and 300 million euros to help fund the acquisition of Ongame E-Solutions, the operator of pokerroom.com, one of the most popular poker websites.
Further Reading
- The rise of accelerated seasoned equity underwritings – onlinelibrary.wiley.com [PDF]
- The Financial and Economic Lessons of Italy's Privatization Program – onlinelibrary.wiley.com [PDF]
- The economics of primary markets – papers.ssrn.com [PDF]
- The marketing of seasoned equity offerings – www.sciencedirect.com [PDF]
- Is Good Advice Hard to Find?: The Impact of Director Connectedness on Financing and Investment – papers.ssrn.com [PDF]
- The Rise of Accelerated Seasoned Equity Underwritings – services.bepress.com [PDF]
- Monetary Policy and Asset Price Volatility: Theoretical Model and Empirical Study in China [J] – en.cnki.com.cn [PDF]
