Module III· ECM — Follow-on, ABB, Rights IssueBasic
Question
What is an accelerated bookbuild (ABB), and how does it work?
Answer
An ABB is a fast equity placement, usually launched after market close and priced within hours or overnight. Banks wall-cross investors, announce the deal, collect orders quickly, set the price at a discount to market, and allocate shares. It is used when speed, confidentiality, and limited market risk are important.