Lead Manager

Key Highlights

• A lead manager is the main financial institution in charge of planning and managing the sale of new securities, like shares or bonds.

• Lead managers design the deal, build the team, take on risk, gauge investor interest, promote the deal, set the price and timing.

Who is Lead Manager?

A Lead Manager is the main financial institution in charge of planning and managing the sale of new securities, like shares or bonds. They lead the entire process when a company raises money from investors, especially in big deals like IPOs or bond issues.

What Do Lead Managers Do?

• Design the Deal: Plan how the offering will work, including the terms and structure.

• Build the Team: Choose and manage other financial institutions (called the syndicate) that will help with the sale.

• Take on Risk: Often agree to buy a big chunk of the securities to make sure the deal goes through.

• Gauge Investor Interest: Collect bids from investors to help set the right price (this is called book building).

• Promote the Deal: Market the offering through investor presentations and roadshows.

• Set the Price and Timing: Help decide when to launch the offer, how much to charge, and who gets how much.

• Manage Risk: Balance the company's needs with what the market is ready to accept.

• Handle Paperwork: Prepare the legal and financial documents needed to launch the offer.

When is a Lead Manager Involved?

Lead Managers playing a key role in following:

• IPOs (Initial Public Offerings)

• Bond issues

• Syndicated loans