Book Building
OFS-2.3.12
The
preliminary/red herring prospectus containing all the information except the information regarding the price at which thesecurities are offered, must be filed with the CBB prior to it being used in any manner by theissuer or its advisors.January 2014OFS-2.3.13
The lead manager and/or the
underwriter to the issue must be nominated by theissuer as a book runner and his name must be disclosed in theprospectus .Amended: October 2017
January 2014OFS-2.3.14
The
preliminary/red herring prospectus to be circulated may indicate the price band within which thesecurities are being offered for subscription.January 2014OFS-2.3.15
The book runner, on receipt of the offers must maintain a record of the names and number of
securities ordered and the price at which the investors are willing to subscribe tosecurities under the placement portion.January 2014OFS-2.3.16
On receipt of the information, the book runner and the
issuer must determine the price at which thesecurities are to be offered to the public.January 2014OFS-2.3.17
The book runner and other appointed advisors associated with the
book building process must maintain records of thebook building process and the CBB has the right to inspect and obtain a copy of such records.January 2014OFS-2.3.18
Details of the outcome of the
book building process must be disclosed in theprospectus or offer document and must include information such as the general range of the prices at which the institutional investors are willing to subscribe to under the placement portion, the total number of securities ordered and the total number of institutions involved. The CBB shall have the right to require the disclosure of any other additional information if it deems necessary.Added: October 2017OFS-2.3.19
The
issuer , lead manager and/orunderwriter must consider the outcome of thebook building process and/or any other processes or arrangements employed, when establishing the final offer price at which the securities are to be offered to the public. A statement to the effect must be duly disclosed in theprospectus .Added: October 2017