m
 



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  ‡ Bookrunner / sponsor 
   ‡ Co-leads / co-managers

„


 ‡ Domestic / international   
 ‡ Company coverage

„   ‡ Debt / equity / new money / dividends

 ‡ Institutional presentations

    ‡ Institutions / general public / employees Y  ‡ Analysts / Press / institutions

  ‡ Accounts / historical record / events 

  ‡ Sales campaign / book built


‡ Business value / investor demand Y    ‡ Issue covered by book at price

          


  

     

 


‡ final undertakings ‡ Target shareholder list ‡ Price stabilisation

‡ fee splits / performance ‡ Aftermarket trading ‡ Continuing obligations
î
 

 
ead
Manager
d

Joint ead The syndicate is a collection of
Manager underwriters and selling institutions
that have grouped together to
undertake and manage an IPO for a
company
Co- ead Co- ead Co- ead Co- ead
Manager Manager Manager Manager
All roles in the syndicate structure are
flexible
Co Manager Co Manager Co Manager
This and the following slides are
illustrative examples of IPO syndicates
Selling Selling
Agent Agent

@
mî 


ead
Manager
‡ Most junior member of the syndicate
Joint ead ‡ Do not underwrite the IPO
Manager ‡ No guaranteed fee

Co- ead Co- ead Co- ead Co- ead

Manager Manager Manager Manager

Co Manager Co Manager Co Manager

Selling Selling
Agent Agent

½
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ead
Manager
‡ 2nd most junior member
Joint ead ‡ Underwrite a small percentage
Manager (c.
of the IPO
‡ small guaranteed fee
‡ Role often offered to reflect existing
Co- ead Co- ead Co- ead Co- ead commercial relationships with the
Manager Manager Manager Manager issuer, e.g. lending banks

Co Manager Co Manager Co Manager

Selling Selling
Agent Agent


m 


ead
Manager
‡ Important player
Joint ead ‡ Underwrite a significant percentage
Manager (c.10-1
of the IPO
‡ Write IPO research on the company
‡ Guaranteed fee to reflect research
Co- ead Co- ead Co- ead Co-
Co-ead
ead efforts
Manager Manager Manager Manager
Manager ‡ Role offered to banks with a proven
track record for their research and
broking skills
Co Manager Co Manager Co Manager
‡ A µvalue-adding¶ member of the
syndicate

Selling Selling
Agent Agent

£
m




ead
Manager
‡ Key player
Joint ead ‡ Part of the decision-making process,
Manager giving advice alongside the ead
Manager, e.g. on timing, offer size
‡ Underwrite a large percentage (c.@-
Co- ead Co- ead Co- ead Co- ead ½
of the IPO
Manager Manager Manager Manager ‡ Write IPO research on the company
‡ Help organise company roadshow

Co Manager Co Manager Co Manager

Selling Selling
Agent Agent

-
m


ead
Manager
‡ Most important syndicate member
Joint ead ‡ Manage the book of demand
Manager ‡ Co-ordinate junior syndicate
members
‡ Underwrite the largest percentage
Co- ead Co- ead Co- ead Co- ead of the IPO
Manager Manager Manager Manager ‡ Write IPO research on the company
‡ Organise company roadshow
Co Manager Co Manager Co Manager ‡ Also referred to as the µBookrunner¶
or µGlobal Coordinator¶

Selling Selling
Agent Agent

‰
m

‡ For the ead Manager only

ead ‡ Reward for documentation and

Manager managing the deal
‡ Typically 20-2 of management
fees earned in the IPO
Joint ead
Manager
Global IPOs that have included a
Praecipium 2000 - 200 YTD
Co-ead
Co- ead Co- ead Co- ead Co- ead
Manager
Manager Manager Manager Manager

Co Manager Co Manager Co Manager

Selling Selling
Agent Agent
î 
 

 
m
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ead
Manager
‡ Difference between the price paid to
the issuer by the underwriter and the
Joint ead price paid by the purchaser of shares
Manager in the IPO
‡ Fee split: 20 Management
Co- ead Co- ead Co- ead Co- ead 20 Underwriting
Manager Manager Manager Manager £0 Selling
‡ Underwriting fees easy to split as
based on fact
Co Manager Co Manager Co Manager
‡ Selling goes to ead Manager.

Selling Selling
Agent Agent

10
d
 
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    # $%  has to
disclose to SEBI
(i
his responsibilities with regard to the
management of the issue,
(ii
any change in the information/ particulars
previously furnished which have a bearing on
the certificate of registration granted to it,
(iii
Names of the companies whose issues he
has managed or has been associated with
(iv
the particulars relating to the breach of
capital adequacy requirements and
(v
information relating to his activities as
manager, underwriter, consultant or advisor to
an issue.
|

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