What is the initiative?
ASX BookBuild is a new capital raising service being offered by ASX. ASX BookBuild will provide an alternative, on market and automated mechanism for companies to use when pricing and allocating securities issued as part of a capital raising. A bookbuild is one of the key mechanisms to price and allocate new securities. ASX BookBuild is subject to regulatory approval.
Why is the initiative important?
ASX BookBuild is not mandatory but will provide companies with more choice and flexibility when issuing new securities. ASX BookBuild provides: 1. On-market access: all eligible investors have the opportunity to participate in the bookbuild; 2. Broader distribution: all ASX brokers can access ASX BookBuild via ASX infrastructure; 3. Visible price: the bookbuild price is live and visible, resulting in more informed bidding; 4. Orderly allocation process: allocations determined by a prescribed set of rules (which uses the intellectual property of On-Market BookBuilds).
For more information about ASX BookBuild please refer to the document links here.