Bookrunners

Bookrunners are senior underwriters who lead the process of issuing securities, coordinating the underwriting syndicate, and determining price and allocation. Their core function is book-building: they collect indications of interest and orders from investors, construct the demand profile, and use it to set the offer price within the agreed range. The book is the register of demand that guides pricing, allocation, and timing.

During preparation they oversee due diligence, draft the offering document, and coordinate roadshows to market the issue. After pricing they manage the allocation of securities to investors, balancing demand with the issuer’s objectives, while ensuring regulatory compliance. In some offerings, stabilization activities may be conducted to support the price post-offering, within allowed rules.

In many deals there are multiple bookrunners; the lead underwriter(s) designated as bookrunner(s) run the book, with other bankers serving as co-managers or syndicate members. The term applies in both equity offerings and debt issuances alike.

Compensation typically includes a gross spread allocated among the syndicate, with the bookrunner receiving a larger share for leadership and coordination. The role is highly collaborative, requiring coordination with the issuer, investors, and regulatory authorities, and it ends with the successful pricing and distribution of the securities.