Define: Accelerated Bookbuild

Accelerated Bookbuild:

An accelerated bookbuild, also known as an accelerated equity offering or an accelerated secondary offering, is a process used by companies to raise capital quickly by selling a large block of shares to institutional investors. This method allows companies to efficiently and expeditiously raise funds without the need for a lengthy and traditional public offering.

During an accelerated bookbuild, the company’s investment bank or underwriter contacts a select group of institutional investors to gauge their interest in purchasing a significant number of shares. The offering price is typically set at a discount to the current market price to incentivize investor participation. The process is conducted over a short period, usually within a day or two, allowing for a swift execution of the transaction.

Accelerated bookbuilds are commonly used by companies seeking to raise capital for various purposes, such as funding acquisitions, reducing debt, or financing growth initiatives. This method provides flexibility and efficiency, as it enables companies to tap into the institutional investor base quickly and secure the necessary funds without the need for a protracted and costly public offering process.