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Raising capital

ASX BookBuild

ASX BookBuild is an additional tool for brokers and investment banks to consider when advising listed entities, or entities seeking to list, on how to price and allocate new securities.

ASX BookBuild utilises existing ASX systems and infrastructure.  It is aimed at providing a bookbuild process that provides the opportunity for all eligible investors and ASX participants (brokers) to participate in the bookbuild.

ASX BookBuild Value Proposition

Opportunity to participate

  • All eligible investors have the opportunity to participate in the bookbuild via their broker
  • All ASX brokers can participate as bidders on behalf of eligible investors and/or Lead Managers
  • No ASX technology or development costs expected

Access all demand

  • Access large pools of untapped capital
  • Contestable pricing & accessing all demand may lower the cost of capital for companies

Visible Price 

  • Bookbuild price is visible to all market participants

Companies retain some control 

  • Pricing & allocation parameters controlled by company / Lead Manager
  • Control provides flexibility to respond to market conditions and tailor for Issuer’s needs

Predetermined allocation process

  • Bids at or above the final bookbuild price receive an allocation according to prescribed rules

 

How will ASX BookBuild work

 

  1. Company decides to do a capital raising using ASX BookBuild. Appoints Technical Lead Manager (TLM). 1
  2. Company and TLM set bookbuild parameters
  3. TLM submits Priority Bids (both First and Second) and initiates open of ASX BookBuild
  4. Participants submit bids on behalf of eligible investors & TLM may amend pricing and allocation parameters
  5. ASX BookBuild determines live bookbuild price which is visible to the market
  6. Company and TLM initiate close function once satisfied with price
  7. Allocations are made to bidders who are at or above the final bookbuild price
    • Stage 1 – First Priority bidders
    • Stage 2 – Second Priority bidders
    • Stage 3 – Price leaders
    • Stage 4 – Remainder of bids
  8. Settlement can occur through CHESS PMF & notifications sent to custodians / registries