8.4. Building the Book

The order book for a public offering, also called the book of orders or just “the book,” is the listing of investors who have given indications of interest in buying the securities once the offering begins. Each underwriter attempts to identify potential investors and market its allotment of shares to them. The sales force may market to existing or prospective customers. In a book-building context, marketing efforts occur before the issue has been priced, and the per-share price is normally stated as a target range.

For most offerings, institutional customers are a primary target for marketing efforts, and the goal is often a “10% ord