Bookrunner Explained

In investment banking, a bookrunner is usually the main underwriter or lead-manager/arranger/coordinator in equity, debt, or hybrid securities issuances.^[1] The bookrunner usually syndicates with other investment banks in order to lower its risk. The bookrunner is listed first among all underwriters participating in the issuance. When more than one bookrunner manages a security issuance, the parties are referred to as "joint bookrunners",^[2] or a "multi-bookrunner syndicate".^{[3] [4]}

The bank that runs the books is the closest one to the issuer and controls the allocations of shares to investors, holding significant discretion in doing so, which places the bookrunner in a very favored position.^{[5] [6]}

External links

• New Look mandate continues Credit Suisse run
• Qatari Diar appoints Qatar Islamic Bank as Initial Mandated Lead Arranger and Bookrunner for QAR 3.5 Billion Syndicated Islamic Facility
• Bank of America Grabs Top Bookrunner Slot

Notes and References

1. "Book Runner", Investopedia.
2. News: Marfin enlists Deutsche, MS as cap increase bookrunners. 27 October 2008. Reuters. 19 December 2019. en.
3. Book: Stowell, David P.. An Introduction to Investment Banks, Hedge Funds, and Private Equity. Academic Press. 2010. 978-0-08-092289-8. Burlington, MA, San Diego, CA and London. 42. en.
4. Book: Espinasse, Philippe. Cornerstone Investors: A Practice Guide for Asian IPOs. Hong Kong University Press. 2018. 978-988-8455-84-3. Hong Kong. 67. en.
5. Book: Geddes, Ross. IPOs and Equity Offerings. Elsevier. 2003. 978-0-08-047878-4. Elsevier Finance. Oxford, England and Burlington, MA. 172. en.
6. Book: Iannotta, Giuliano. Investment Banking: A Guide to Underwriting and Advisory Services. Springer Science & Business Media. 2010. 978-3-540-93765-4. Heidelberg, Dordrecht, London and New York. 70. en.