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Bookbuild

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Molemishi
Contributor
Anyone can explained what is a bookbuild and how it works?
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5 REPLIES 5
Valued Contributor
basically a company phones around and sells a whole bunch of new shares to raise cash ..
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Molemishi
Contributor
Thans Simon, i will learn as a new trader
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Regular Contributor
why would they not offer existing share holders this option? If im not mistaken SHF raised funds selling new shares at around R52? Surely current shareholder should be given the option to buy (or perhaps they were and i am unaware)?
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Valued Contributor
they weren't, unless a large institution .. rights issue will also be at R52 and existing will be offered that
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Highlighted
Super Contributor
They wanted to build a european investor base ahead of Frankfurt listing, hence bookbuild restricted to european investors.
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