What is a bookbuild?

A bookbuild is the process through which a company generates, captures and records investor demand when raising capital. The intention of this is to achieve the best price in the sale of the shares.  

In capital markets speak, the 'book' is the list of investors who want to buy shares in the capital raising, and companies usually appoint investment banks or brokers to 'build the book' and determine who will receive shares and at what price.

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