Customary Principles for Placement Agreements

Philippe Espinasse
Additional contact information
Philippe Espinasse: University of Hong Kong

Chapter 6 in IPO Banks, 2014, pp 98-99 from Palgrave Macmillan

Abstract: Abstract Negotiating placement agreements, which are in effect the equivalent for institutional/international tranches of the underwriting agreements (a term normally used for retail offers, which are typically underwritten at the outset, that is prior to the selling process to the public actually being initiated) are often the subject of considerable negotiation. Unlike retail offers, institutional or international offers are usually underwritten after the pricing of an IPO, that is, what is actually underwritten by the banks is only the settlement risk between pricing and closing of the transaction — in effect the remote possibility that institutions will default and ultimately fail to pay for their shares.

Date: 2014
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-41294-2_27

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137412942

DOI: 10.1057/9781137412942_27

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().