CAPITAL RAISING PROCESS

Underwriting involves book Building which occurs when buyers are found for Shares issued by the Client or Company engaging the underwriter.

Prices of Shares are sought for:

- stability

- buoyancy after market

- depth of investor base 

- access to market

A firm does not have to engage an underwriter since by doing so it may lose share of Profits. The amount which is lost is the IPO Discount.