It is a method of flotation in which a company issues shares to a select group of institutional investors.
An arrangement whereby a new issue of shares are not offered to the general public, but instead are sold to a small number of investors, usually, institutions investors such as pension funds.
An issue of new shares, by a company, direct to investors to raise additional funds. It is often used to pay for the acquisition of another business.
The issue of new shares which are sold directly to new shareholders.... more on: Placing
The process of selling newly issued securities to individual or institutional investors.
A placing is the issue of new shares for cash to investors without first offering them to existing shareholders. These shares are usually issued at a slight discount to the current share price. Restrictions exist on the percentage of its existing share capital a company can sell by this method in order to protect current shareholders.
a swift auction of stock among financial institutions, carried out by an investment bank
A method of raising money for a company. Usually, a placing is effected by institutional subscription to a new share issue, which is not open to the general public.
The cheapest method of offering new shares for sale via an intermediary. In a placing, a company passes the shares to a particular broker which then sells the shares on to its client base, thus eliminating the need for advertising.
Obtaining subscriptions for, or the sale of, primary market, where the new securities of issuing companies are initially sold.
A marketing of securities already in issue or to be issued to persons or customers selected by the sponsor of the issuer. This does not involve an offer to the wider investing community
Term used to describe when a company's broker contacts his own clients and offers the shares to them. The general public will not necessarily be offered any shares.
Shares that are bought at a fixed price by other companies. Issuing new large shares and investing them within a major investor.
Placement of a security among institutional investors before it is listed on a secondary market.
A new issue of shares sold only to institutions rather than private investors.
Procedure used for new issues where a securities house contracts its own clients to offer them stock. It is almost always used for new issues of eurobonds and for equities on the London Stock Exchange more so since January 1996 when restrictions on their use were removed.
This is when a merchant bank or broker advising a company arranges for other institutions or individuals to buy that company's shares at a fixed price. The advantage of this is that placing the shares for the company then cuts out the broker (i.e. the middle man). Examples of placing include when there are a small amount of shares available in a new issue or alternatively if a large stake in a company is for sale. A placing is often used by institutions prior to a public offer. A placing helps ensure that a minimum sum is raised and therefore, that the launch will be a success.
Raising money by issuing new shares and 'placing' them, generally in substantial amounts, with major investors who have agreed to purchase the shares. Shares are not offered to the general public.
a means of raising new capital by entering into an arrangement with major investors who agree to acquire a specific number of new shares.
An issue of shares where the issuing house places the shares directly with its own client base rather than inviting applications for the shares from outside third parties. A method of issuing shares where a company is obtaining a listing for the first time. See also Offer for Subscription, Offer for Sale, Intermediaries Offer and Introduction. This method of issuing securities is also common in bond markets.
A new issue may be placed with a small number of institutions, thus reducing the costs.