Book Building Process and Allocation Method in Secondary
9: Book Building Process and Allocation Method in Secondary Public Offering
a) The financial advisor of the selling shareholder
is permitted to offer the shares to the participating parties and retail
subscribers during the book building period, provided that the period of the
Authority's review of the secondary public offering’s notice - in accordance
with the Rules on the Offer of Securities and Continuing Obligations – expires
without issuing a notification by the Authority stating that the secondary
public offering is not to be made.
b) The financial advisor, in coordination with the selling shareholder in the secondary public offering,
shall determine a percentage of the full offering to be allocated to
institutional investors, and the financial advisor shall determine a
percentage of it to be allocated to public funds; in the event that there is
insufficient coverage from public funds for the percentage allocated to them,
the percentage allocated to them shall be reduced within the limits of what
was covered by them.
The book building period shall not exceed (14) calendar days.
The participating entities provide their bidding participation applications
in the book building in the manner that the financial advisor of the selling
shareholder in the secondary public offering
determines, provided that the financial advisor and any other capital market
institution that is associated with receiving bidding participation
applications make the necessary arrangements and procedures to ensure
documenting the bidding participation applications and verifying their
validity, and verify the financial solvency of the participating entities and
their ability to pay the value of the shares requested in the bidding
participation application when allocated, before registering the bidding
During book building, the following requirements must be satisfied:
The financial advisor must announce the book building period without
prejudice to paragraph (c) of this Part.
The financial advisor must announce the price range, and ensure its
availability to all participating parties.
The announcement made by the financial advisor regarding the book building
period and price range must be available to all participating parties on its
At the end of the book building period, the financial advisor shall announce
the offer coverage percentage by all participating parties on its website.
The allocation percentage for participating entities shall be set forth in
the secondary public offering document, provided that the allocation
percentage for public funds is indicated in the offering document.
The allocation percentage for retail subscribers in the secondary public
offering shall be set forth in the secondary public offering document.
It is not permissible to allocate any of the shares of the secondary public
offering to retail subscribers if the final price of the offering is higher than
the closing price for the day preceding the end of the subscription period
for retail subscribers. In this case, all subscription amounts shall be
returned to the retail subscribers without any deduction.